April 27, 2021

What is AMM? Explaining the Automated Market Maker Protocol

Anton Golub, the CEO and Co-Founder of Flovtec shares details about the AMM protocols. Automated Market Maker protocols are smart contracts which automatically offers a price for the exchange of the digital assets. The Automated Market Maker Protocols come with a few features. First is, the AMM protocols offer a single price for the exchange of two digital assets instead of a full order book. Also, the price that the AMM protocols offer are very popular. Thirdly, they don’t have capital themselves and they gather capitals from the third-party participants through the liquidity pools and the way the participants get incentives to offer capital to the liquidity pools is because the AMM protocols share a certain part of the trade fee along with the capital providers.

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What is AMM? Explaining the Automated Market Maker Protocol

Anton Golub, the CEO and Co-Founder of Flovtec shares details about the AMM protocols. Automated Market Maker protocols are smart contracts which automatically offers a price for the exchange of the digital assets. The Automated Market Maker Protocols come with a few features. First is, the AMM protocols offer a single price for the exchange of two digital assets instead of a full order book. Also, the price that the AMM protocols offer are very popular. Thirdly, they don’t have capital themselves and they gather capitals from the third-party participants through the liquidity pools and the way the participants get incentives to offer capital to the liquidity pools is because the AMM protocols share a certain part of the trade fee along with the capital providers.