CRYPTO GLOSSARY

Automated market maker

Also called: AMM

The design most decentralised exchanges use. You trade with a pool of tokens, and the price comes from the ratio of the tokens in the pool.

Automated market maker in more detail

Lesson 12 described the order book: a list of buyers and sellers that a centralised exchange matches. Most DEXs work differently. They use an automated market maker.

FROM LESSON 42 · 5 MIN READDEXs and liquidity pools: how swapping worksA decentralised exchange swaps tokens against a pool, not an order book. Learn how a liquidity pool sets its price, what price impact and slippage are, and how to swap without overpaying.Read the lesson

All 128 terms · Checked against the lesson's sources on 10 October 2026.

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