An Automated Market Maker (AMM) is a protocol used by decentralized exchanges to determine asset prices through mathematical formulas rather than traditional order books. It relies on liquidity pools to enable continuous and efficient trading.
AMMs allow users to trade assets in a decentralized and trustless manner, with prices adjusting automatically based on supply and demand.
This innovation has transformed decentralized trading, making it more accessible and resilient without the need for centralized intermediaries.
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