Wed. Jun 16th, 2021
Automated market makers, Free TON House, Wiki

Automated market makers (AMMs) are protocols that use automatic algorithmic trading to manage liquidity on certain markets.

In blockchains and decentralized cryptocurrency exchanges, smart contracts are used as AMMs that create token liquidity pools. 

The price of tokens is determined automatically based on a specified mathematical algorithm.

Using AMM allows users of decentralized exchanges not to contact other traders, but to work directly with smart contracts.

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