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)
Popular AMMs
Uniswap, Curve, Balancer, SushiSwap, Raydium