What Is AMM?

Automated market maker (AMM) is a bonding curve based decentralised exchange.

An automated market maker (AMM) is a type of decentralised exchange (DEX) protocol that uses algorithmic smart contracts to make it easy for individual traders to buy and sell crypto assets. Instead of trading directly with other people as with a traditional order book, users trade directly through the AMM. AMMs facilitate the decentralised exchange of digital assets using liquidity pools rather than conventional market order books.

AMMs can be often seen as the opposite of order book markets. In an AMM, the user is trading against liquidity pool.

AMMs can be

Example AMMs include Uniswap, Curve, Sushi, Trader Joe.

See also

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