Notitia
Trading without an order book.
An automated market maker (AMM) replaces the order book with a ‘pool’ of two assets. A formula (often x·y=k) sets the price from the balances. Liquidity providers deposit both assets and earn a share of fees.
This powers decentralised exchanges (Uniswap, Curve). In exchange for fees, providers are exposed to ‘impermanent loss’.
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