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DeFiA
AMM
Automated Market Maker — a type of DEX protocol that uses mathematical formulas (like x*y=k) to price assets instead of an order book. Examples include Uniswap and Curve. AMMs allow anyone to become a liquidity provider by depositing tokens into a pool, earning trading fees in return, though they carry risks such as impermanent loss.
Example
“I swapped ETH for USDC through an AMM on Uniswap with minimal slippage thanks to the pool's deep liquidity.”