Difference between revisions of "AMM"
Jump to navigation
Jump to search
(Created page with "An AMM or, Automated Market Maker, allows digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula. Liquidity pools can be optimized for different purposes, and are proving to be an important instrument in the DeFi ecosystem.<ref>https://www.gemini.com/cryptopedia...") |
|||
Line 1: | Line 1: | ||
An AMM or, Automated Market Maker, allows digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula. Liquidity pools can be optimized for different purposes, and are proving to be an important instrument in the [[DeFi]] ecosystem.<ref>https://www.gemini.com/cryptopedia/amm-what-are-automated-market-makers</ref> | An AMM or, Automated Market Maker, allows digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula. Liquidity pools can be optimized for different purposes, and are proving to be an important instrument in the [[DeFi]] ecosystem.<ref>https://www.gemini.com/cryptopedia/amm-what-are-automated-market-makers</ref> | ||
== References == |
Revision as of 12:52, 25 April 2022
An AMM or, Automated Market Maker, allows digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula. Liquidity pools can be optimized for different purposes, and are proving to be an important instrument in the DeFi ecosystem.[1]