What is AMM in the context of decentralized finance (DeFi)?

3 answers

• Dec 25, 2021 · 3 years ago
  AMM stands for Automated Market Maker, which is a type of decentralized exchange protocol used in DeFi. It allows users to trade cryptocurrencies directly with smart contracts, eliminating the need for intermediaries like traditional exchanges. AMMs use algorithms to determine the prices of assets based on the ratio of their supply. One popular AMM protocol is Uniswap, which has gained significant traction in the DeFi space.
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• Dec 25, 2021 · 3 years ago
  AMM, short for Automated Market Maker, is a key component of decentralized finance (DeFi). It refers to a type of algorithmic trading protocol that enables users to trade cryptocurrencies directly on the blockchain without relying on centralized intermediaries. AMMs use liquidity pools and smart contracts to facilitate trades and determine asset prices based on supply and demand. By eliminating the need for order books and traditional market makers, AMMs provide a more open and accessible trading experience for users.
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• Dec 25, 2021 · 3 years ago
  AMM, or Automated Market Maker, is a concept in decentralized finance (DeFi) that allows for the creation of liquidity pools and automated trading on the blockchain. It's like having a market maker that operates 24/7 without human intervention. AMMs use mathematical formulas to determine the prices of assets based on the ratio of their supply. This approach has gained popularity in DeFi because it eliminates the need for order books and allows for more efficient and decentralized trading.
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