What is AMM (automated market maker)?

AMM, short for automated market maker, is an innovative trading model derived from Defi projects. Unlike the traditional order book transaction model, AMM decentralized market makers and automated trading process.

Everyone can put token into the liquidity pool, become a small market maker, and then enjoy the profits from trading pair service fees. Funds in the liquidity pool are controlled by decentralized open source contracts, and AMM transaction data are all on the chain.