Token Pair
A combination of two digital assets in a DEX liquidity pool, enabling direct swaps between them via AMM mechanisms.
What is Token Pair?
Token pairs form the foundation of DEX liquidity pools, consisting of two assets (e.g., WETH/DAI) that users can swap directly. The pair’s ratio, governed by AMM formulas like x * y = k, determines pricing. Uniswap V3 hosts over 1,000 pairs, with WETH/USDC commanding $1.5 billion TVL and $400 million daily volume in 2025, per protocol data. Popular pairs like USDC/USDT on Curve maintain stable 1:1 ratios, minimizing slippage (<0.01% for $5,000 trades). Niche pairs, like a new altcoin/WETH with $50,000 TVL, risk 3% slippage. A 2024 exploit targeted a low-liquidity pair, draining $4 million via price manipulation. Users should prioritize high-TVL pairs and verify ratios on platforms like DexScreener to ensure efficient swaps in DeFi’s $1.5 trillion trading ecosystem.
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