AMM
Geautomatiseerde market maker met liquiditeitspools.
An AMM is a smart-contract system that prices assets algorithmically using a mathematical formula, most commonly the constant product formula (x * y = k). When a user buys token A from a pool, the amount of A decreases and B increases, pushing A's price up automatically.
AMMs solved the chicken-and-egg liquidity problem for on-chain trading. Instead of needing active market makers placing limit orders, anyone can deposit tokens into a pool and earn fees. This democratised market making and enabled the DeFi boom starting in 2020.
Advanced AMM designs have emerged: concentrated liquidity (Uniswap v3) lets LPs focus capital in specific price ranges, while stableswap AMMs (Curve) optimise for low-slippage trading between similarly-priced assets. Each design trades off capital efficiency, complexity, and impermanent loss characteristics.
AMMs are the engine of DeFi trading. Understanding how they price assets and distribute fees is fundamental to participating in or analysing decentralised markets.
Hoe CryptoRadar24 het volgt
CryptoRadar24 monitors AMM pool metrics including TVL, fee revenue, and volume for protocols using AMM architecture, displaying this data on relevant coin pages.
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FAQ
What is the constant product formula?
The formula x * y = k means the product of the two token reserves must remain constant. This automatically adjusts prices as traders buy or sell.
How do AMMs determine price?
Price is the ratio of token reserves in the pool. As one token is bought, its reserve decreases and price increases according to the bonding curve.
What is concentrated liquidity?
Introduced by Uniswap v3, it lets LPs allocate capital to specific price ranges instead of the full 0-to-infinity range, improving capital efficiency.
Do all DEXs use AMMs?
Most do, but some (like dYdX or Serum) use on-chain order books. Hybrid models also exist that combine elements of both.