What is an Automated Market Maker AMM? AMMs explained
To achieve a fluid trading system, centralized exchanges rely on professional traders or financial institutions to indexing in dbms provide liquidity for trading pairs. These entities create multiple bid-ask orders to match the orders of retail traders. With this, the exchange can ensure that counterparties are always available for all trades. They’re also useful because they can provide constant liquidity as the pool is always willing to trade.For example, if the LP provides 1/20 of a specific pool’s total liquidity, [...]