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  • Welcome
  • Protocol Level
    • Liquidity Pools
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      • New Pool Creation
      • Add Liquidity
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    • Setting Up a Wallet
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      • Connecting Your Wallet
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  • TOKENOMICS & GOVERNANCE
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    • Proposals & Voting
  • Information
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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.

PreviousProposals & Voting

Last updated 2 years ago