AMM

Automated Market Maker

1. definition

An Automated Market Maker (AMM) is a type of decentralized trading platform that uses smart contracts and algorithms to determine asset prices. Unlike traditional exchanges, AMMs operate without central control or an order book. Instead, they allow anyone to provide or remove liquidity for any cryptocurrency pair at any time.

AMMs often incentivize liquidity providers with rewards in the form of governance tokens.

1.1 Examples of AMMs

Examples of AMMs include SushiSwap, UniSwap, and numerous other similar applications.

* All terms and definitions may update as the Cryptionary improves.