Understanding Market Balances
Market balances represent the remaining tokens or coins after a trade has been executed on a decentralized exchange (DEX).
In traditional finance, market orders are commonly fulfilled through intermediaries such as brokers or trading exchanges, where the orders are executed at the best available current price.
Decentralized Finance (DeFi)
This significantly reduces the need for intermediaries and associated fees.
Executing Market Orders
To perform a market order on a DEX, users connect their digital wallets (e.g., MetaMask) to the DEX, specify the amount of one asset (e.g., USDC) they want to trade for another asset (e.g., RIN), approve the transaction, and pay a small liquidity provider fee and gas fee.
The user then receives the corresponding amount of the desired asset (e.g., RIN) based on the current market price.