What is an Automated Market Maker (AMM)? An Automated Market Maker (AMM) is a decentralized protocol that facilitates cryptocurrency trading without relying on a centralized authority or conventional order books. Instead, it leverages liquidity pools to streamline the swapping of digital assets. In essence, AMMs have transformed the decentralized finance (DeFi) ecosystem by utilizing mathematical models to automate trades. They harness blockchain’s decentralized principles, enhance market liq...