An Automated Market Maker (AMM) is an algorithm to facilitate decentralized exchange trading. AMMs are designed to provide traders with access to liquidity and enable them to trade tokens without needing order books or market makers. They work by automatically setting prices for buyers and sellers based on supply and demand, thereby minimizing spreads, reducing transaction fees, and improving overall efficiency in the process.
What Is an Automated Market Maker (AMM)?
What Is an Automated Market Maker (AMM)?
What Is an Automated Market Maker (AMM)?
An Automated Market Maker (AMM) is an algorithm to facilitate decentralized exchange trading. AMMs are designed to provide traders with access to liquidity and enable them to trade tokens without needing order books or market makers. They work by automatically setting prices for buyers and sellers based on supply and demand, thereby minimizing spreads, reducing transaction fees, and improving overall efficiency in the process.