FAQ

What is Automated Market Maker?

An automated market maker - is a type of decentralized exchange where trading is facilitated by liquidity pools, instead of using traditional buyer/seller markets and orderbooks.

• Anyone can create a trading pair (pool) or add liquidity to existing pair.

• Liquidity providers earn commissions from each trade inside pool of two assets depends of their share in pool.

• Quote of the pair is calculated by reserves of each asset in the pool (From the constant product formula it follows that the price of that token A is simply price_token_A = reserve_token_B / reserve token_A).

It enables permissionless automated decentralized exchanges. It's trully innovative idea, which launched the entire DeFi market.