Automated Market Maker is a decentralized trading platform (DEX) protocol that prices assets through a mathematical formula. Asset pricing is done through a pricing algorithm, eliminating the use of order books commonly used in traditional trading platforms. The pricing formula varies with different protocols. For example, Uniswap uses a formula of x * y= k, where x represents the number of one token in the liquidity pool and y represents the number of another token. In this formula, k is a f...

Automated Market Maker is a decentralized trading platform (DEX) protocol that prices assets through a mathematical formula. Asset pricing is done through a pricing algorithm, eliminating the use of order books commonly used in traditional trading platforms. The pricing formula varies with different protocols. For example, Uniswap uses a formula of x * y= k, where x represents the number of one token in the liquidity pool and y represents the number of another token. In this formula, k is a f...