What it means
Automated market maker: a DEX that prices trades with a formula over a pool of tokens, instead of matching buyers and sellers.
When you trade, you add one token to the pool and take out another, and the formula moves the price a little with each trade.
How it works
Uniswap and Curve are well known AMMs.
Related terms
| Term | What it means |
|---|---|
| DEX | Decentralised exchange: smart contracts that let you trade tokens straight from your own wallet, with no company holding your money. |
| Liquidity pool | Tokens locked in a smart contract that people can trade against or borrow from. |
| Slippage | The difference between the rate you see and the rate you get, because the price moved before the trade settled. |
This glossary explains terms in general. It isn't investment, tax or legal advice.