CRYPTO GLOSSARY · FINANCE

What is AMM?

Automated Market Maker for decentralized trading.

📖 Full Definition

An AMM (Automated Market Maker) is a type of decentralized exchange that uses mathematical formulas to price assets, instead of order books. AMMs use liquidity pools to enable trading without direct counterparties.

💡 Example

Uniswap was the first major AMM, using the constant product formula x*y=k.

🔗 Related Terms

DEX

Decentralized Exchange for peer-to-peer trading.

Liquidity Pool

Pool of tokens enabling decentralized trading.

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