Automated Market Makers (AMMs)

Short Description:

An "automated market maker" (AMM) is a type of decentralized exchange (DEX) protocol that facilitates the exchange of cryptocurrencies without the need for traditional order books and intermediaries. AMMs use mathematical algorithms and smart contracts to automatically match buyers and sellers, determine prices, and provide liquidity to the market.

Main Description:

An “automated market maker” (AMM) is a type of decentralized exchange (DEX) protocol that facilitates the exchange of cryptocurrencies without the need for traditional order books and intermediaries. AMMs use mathematical algorithms and smart contracts to automatically match buyers and sellers, determine prices, and provide liquidity to the market. They are a key component of decentralized trading and have gained significant popularity in the cryptocurrency space.