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Automated Market Maker (AMM)

An Automated Market Maker (AMM) is a type of decentralized exchange protocol that uses mathematical formulas and liquidity pools to determine asset prices, instead of relying on a traditional order book. Users provide liquidity by depositing token pairs into pools, and traders swap against these pools. AMMs like Uniswap and PancakeSwap have become fundamental building blocks of DeFi.

Automated Market Maker (AMM) Explainer Video

What is an Automated Market Maker (AMM)? | Crypto Terms Explained

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