# FAQ **Why use an AMM (Automated Market Maker) instead of a CEX (Centralized Exchange) to do transactions.** * Compared to centralized exchanges, AMMs like Belt.fi inherently offer more immediacy to the transactions, as trades are not based on order books. As long as there is liquidity in the pools, transactions occur. This has multiple advantages including less time, slippage, and price impact. #### **Why use Belt.fi instead of a different AMM on BSC?** AMM's do not flourish if they do not satisfy the needs of both Makers and Takers. Makers benefit as more transactions occur in the liquidity pools they deposit into. Simply put, more transactions equate to greater yield as fees accumulate. This means that Takers need incentive to conduct their transactions through the AMM. Belt.fi satisfys the needs of both these sides. * **For Makers (liquidity providers)** * The high trading volumes on other exchanges proves the meaningfulness of these types of swaps. Optimized transaction fee yield from our multiple strategy approach and liquidity mining on Belt.fi offer higher rewards (APY and BELT token rewards) that satisfy maker needs. \*\*\*\* * **For Takers (traders doing token swaps)** * Because of Belt.fi’s low trading fee, slippage, and price impact, it is advantageous to do your stable-to-stable swaps on Belt.fi. Take for example, two Ethereum based protocols, Uniswap and Curve. Curve is advantageous when swapping between tokens as it has less slippage and less price impact. There is also the benefit of directly swapping between tokens in pools without having to re-route trades in multiple steps. #### What is multi-strategy? Why is it special? By having multiple strategies simultaneously, Belt.fi minimizes dependence on any one protocol at once. Essentially, this protects you from low-liquidity withdrawal pains. Using Belt Finance also means that you do not actively need to move around your assets to find optimal yield. We do it for you. Even better, we auto-compound it and give you BELT rewards. Our pools/vaults use multiple strategies simultaneously and this guarantees the most reliable, highest yield across all of BSC, HECO Chain, and Klaytn DeFi. #### What happens with the Belt multi-strategy pools/vaults if one protocol fails? Is multi-strategy more risky? We didn’t just haphazadly put in strategies and only chose what we consider to be the trustable, stable protocols and we’re in open communication with the teams. We always urge users to DYOR but we think multi-strat really hedges risk while delivering the highest yield possible. And as we offer the choice between going with the 4belt pool and the existing venus pool , users that want to only stay in venus can choose that pool. Another way of viewing this is that your risk is spread across multiple protocols instead of being all in 1 protocol. Also, in the case that one protocol fails, the losses are spread across all of the pool users, so you won’t be affected as greatly. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.belt.fi/faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.