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AMM (Automated Market Maker)

A decentralized exchange mechanism that uses liquidity pools instead of order books.

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What is an AMM?

An Automated Market Maker is a type of decentralized exchange that uses mathematical formulas to price assets. Instead of matching buyers and sellers, trades execute against liquidity pools.

Common AMM Formulas

  • Constant Product: x × y = k (Uniswap)
  • Constant Sum: x + y = k (stablecoin optimized)
  • Hybrid: Combines approaches (Curve)

Uniswap, Curve, Balancer, SushiSwap, Raydium

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