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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.

Avalanche (AVAX)AUM (Assets Under Management)

Automated Market Maker (AMM)

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