Automated market maker
Automated market makers (AMMs) are a type of decentralized exchange mechanism that uses a pricing algorithm to allow digital assets to be traded without permission and automatically, using liquidity pools rather than buyers and sellers.
All edits by Maria Ilyenko
Edits on 24 Jan, 2022
Maria Ilyenko
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Automated market maker
AMM is a type of decentralized exchange
Article
An automated market maker (AMM) is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to price assets. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm. Pricing information often comes from multiple APIs to always provide the most accurate cost. Also anyone can become a liquidity provider for automated market makers and receive a commission for trading.
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