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Automated Market Maker (AMM) – An “Automated Market Maker” (AMM) is a smart contract-based algorithm that facilitates automatic cryptocurrency trading on decentralized exchanges. It provides liquidity by allowing users to contribute assets to liquidity pools and earn fees. Delve into the world of AMMs, understanding their role in enhancing liquidity, reducing trading slippage, and enabling efficient decentralized trading. Explore how AMMs democratize market-making functions, enabling individuals to participate in shaping liquidity within blockchain ecosystems, and driving the evolution of decentralized finance (DeFi) platforms.
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