Automated Market Makers (AMMs) work similarly to traditional order book trading platforms in that both set up trading pairs (e.g., ETH/DAI). However, the former does not require trading with a specific counterparty (another trader). In the AMM mechanism, traders interact with a smart contract to "create" a market for themselves. In decentralized trading platforms such as Coinan Decentralized Exchange (DEX), trading takes place directly between users' wallets. If you sell a BNB for a BUSD...

Automated Market Makers (AMMs) work similarly to traditional order book trading platforms in that both set up trading pairs (e.g., ETH/DAI). However, the former does not require trading with a specific counterparty (another trader). In the AMM mechanism, traders interact with a smart contract to "create" a market for themselves. In decentralized trading platforms such as Coinan Decentralized Exchange (DEX), trading takes place directly between users' wallets. If you sell a BNB for a BUSD...