Episode 54 - Automated Market Makers (AMM)

BlockShots: Blockchain Simplified

1×

0:00

-4:57

Episode 54 - Automated Market Makers (AMM)

Gautam Dhameja

Dec 05, 2022

In this episode, we cover Automated Market Makers or AMMs.

Traditionally exchanges are based on order books. Buyers and sellers are matched with quantity and price in their orders.

AMMs are different. They use a conversion formula for trades. They use decentralized liquidity pools for liquidity.

Any user can send one asset and get another asset from AMM, as long as there is a liquidity pool with enough liquidity in it.

Music: https://www.purple-planet.com

0 Comments

BlockShots: Blockchain Simplified

Welcome to BlockShots, your guide to demystifying the world of blockchain in a clear and approachable way. Whether you're a crypto enthusiast or just starting out, our goal is to provide you with a solid foundation in blockchain technology. BlockShots is your trusted source for blockchain education in a down-to-earth, no-nonsense style. Tune in, learn, and navigate the world of blockchain with confidence.

Listen on