AMM (Automated Market Maker)


Automated Market Maker – Theorised by @vitalik and pioneered by @uniswap, AMM were one of the groundbreaking introductions that kicked off DeFi summer and DeFi itself by making DEXs possible. Instead of an order book matching buyers and sellers managed centrally like Binance or Coinbase, AMMs allow crypto assets to be traded in an automated and permissionless way. Liquidity pools are used to ensure there is always a counterparty to the trade.

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