Automated Market Maker (AMM)
DeFiUpdated: October 15, 2025
Also known as: AMM, Automated Market Maker
Algorithmic trading model using liquidity pools instead of order books
Algorithmic trading model using liquidity pools instead of order books.
AMMs enable decentralized trading by using mathematical formulas to price assets based on the ratio of tokens in liquidity pools. Uniswap pioneered this model, which powers most decentralized exchanges today.