Neon Earth Dictionary
DeFi is a market that is constantly evolving. But rapid growth requires a system that provides instant transactions. This system is known as AMM.
đź’°AMM (Automatic Market Maker) is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to determine the price of assets.
Simply put, this system helps to make transactions between users and contracts without any intermediary.
An automated market maker has two key benefits:
⚡️ instant transactions,
⚡️automatic regulation of the price of assets in the liquidity pool.
Uniswap is the company that developed the AMM protocol in 2019 and made it possible for other exchanges to use a simplified mechanism for transactions.
In the Neon Earth metaverse, you can trade tokens on the PancakeSwap exchange, which also uses the AMM systemđź’Ş
