Automated market maker (AMM)
An AMM is a DEX design that prices tokens from a pool's balances instead of an order book.
Why it matters
Prices move as you trade, so big orders in small pools get worse rates.
Compare swap ratesRelated terms
Liquidity poolA liquidity pool is a pot of two tokens locked in a smart contract that traders swap again…SlippageSlippage is the difference between the price you expect and the price you get, caused by p…DEX (decentralized exchange)A DEX lets you trade tokens straight from your wallet through smart contracts, with no acc…
Written by the VaultX AI team. Educational only, not investment advice.
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