Automated Market Makers (AMMs): A New Approach to Liquidity Provision
Automated market makers (AMMs) have emerged as a popular approach to liquidity provision in the decentralized finance (DeFi) space. Unlike traditional order book-based exchanges, AMMs use mathematical algorithms to determine the price of assets and provide liquidity for trades. In this article, we’ll explore the basics of AMMs, their benefits, and their challenges. What are…