By Ayman Websites 
Introduction
As the decentralized finance (DeFi) landscape evolves, understanding the nuances of investment in Automated Market Makers (AMMs) becomes pivotal, especially in emerging markets like Vietnam. With losses exceeding $4.1 billion due to DeFi hacks in 2024, the urgency for secure and reliable investment strategies has never been more pronounced. This article aims to provide a comprehensive overview of HIBT automated market makers (AMMs) investment in Vietnam, shedding light on the local market’s growth and potential.
Why AMMs are Gaining Traction
The landscape of digital currencies is undergoing a seismic shift. The usage of AMMs has surged due to their unique operational structure compared to traditional exchanges, fostering significant liquidity and reducing reliance on order books. Just like a bank vault for digital assets, AMMs enable seamless trading while minimizing risk.
- Liquidity Pools: Investors contribute assets to liquidity pools, receiving rewards in return.
- Decentralized Trading: Users can trade directly against a pool of assets, lowering transaction costs.
Vietnam’s Crypto Market Overview
Vietnam has been marked as a hotspot for cryptocurrency adoption, with a user growth rate exceeding 160% in 2022 alone, according to a report by Statista. The Vietnamese government has also shown interest in blockchain technology, emphasizing regulations to ensure a secure trading environment. As more users flock to AMMs, understanding local regulations becomes crucial.
Impact of Local Regulations
Regulatory compliance is a challenge for many investors. As businesses navigate through the legal maze, consulting local regulations concerning cryptocurrency trading is essential. For instance, according to Visual Capitalist, regulations on blockchain security standards (
