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What is an Automated Market Maker? (Liquidity Pool Algorithm)

May 22, 2021 10:25 637

You might be asking what an automated market maker An automated market maker (AMM) is the underlying protocol that powers all decentralized exchanges (DEXs). Automated market makers (AMM) are methods that automate digital asset trading without the need for authorizationLearn more is. In this video, we explain how constant product automated market makers using a very simple story so you can understand how the algorithm of a liquidity pool works. That was a lot of big words, but here on Whiteboard Crypto, we hope that you understand it all by the end of watching this video!

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