Cryptocurrency Q&A
What is an AMM in crypto?
What is an AMM in crypto?
HallyuHype
Wed Jul 03 2024
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6 answers
1517
Could you please elaborate on what an AMM stands for in the context of cryptocurrency? I've heard this term mentioned frequently but am still unclear on its precise definition and functionality. As a professional practitioner in the field of cryptocurrency and finance, I'm curious to understand how AMMs work and how they impact the market. Specifically, I'm interested in knowing how they facilitate trading, the advantages they provide over traditional methods, and any challenges or limitations that they might have. Any insight you can provide would be greatly appreciated.
6 answers
BlockchainWizard
Fri Jul 05 2024
The absence of a direct link between these two parties often leads to inefficiencies in the market.
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Caterina
Fri Jul 05 2024
In the realm of cryptocurrency, the cornerstone objective of an Automated Market Maker (AMM) lies in providing crucial liquidity.
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KatanaSharp
Fri Jul 05 2024
This liquidity acts as a bridge between those with excess supply and those with unmet demand.
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Filippo
Fri Jul 05 2024
Imagine a farmer who has harvested an abundant crop but finds no buyers. Conversely, consider a consumer who desires to purchase fresh farm produce but lacks direct access to farms.
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Giulia
Thu Jul 04 2024
An AMM in the decentralized finance (DeFi) space addresses this issue by enabling the seamless buying and selling of cryptocurrencies.
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