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Automated market makers (AMMs) power many decentralized exchanges by replacing traditional order books with liquidity pools and pricing algorithms. Instead of matching buyers and sellers directly, AMMs allow users to swap tokens against pooled liquidity while prices adjust automatically based on supply and demand within the pool. This mechanism enables continuous trading and liquidity across decentralized markets, forming one of the core infrastructures behind decentralized finance. #AMM #DEX #W
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Automated market makers (AMMs) power many decentralized exchanges by replacing traditional order books with liquidity pools and pricing algorithms. Instead of matching buyers and sellers directly, AMMs allow users to swap tokens against pooled liquidity while prices adjust automatically based on supply and demand within the pool. This mechanism enables continuous trading and liquidity across decentralized markets, forming one of the core infrastructures behind decentralized finance. #AMM #DEX #W
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