Automated Market Maker (AMM)

By: WEEX|2024/10/11 10:38:42

An Automated Market Maker (AMM) is a protocol used in decentralized exchanges (DEXs) to facilitate trading without relying on a traditional order book. Instead of matching buyers and sellers, AMMs use liquidity pools, where users provide liquidity in pairs of assets. The price of assets is determined by a mathematical formula, and liquidity providers earn fees from trades. A popular example of an AMM is Uniswap, where users can trade tokens directly from their wallets without needing a centralized intermediary.

You may also like

Share
copy

Gainers

Community
iconiconiconiconiconiconiconicon

Customer Support@weikecs

Business Cooperation@weikecs

Quant Trading & MM[email protected]

VIP Services[email protected]