An Automated Market Maker uses software to match buy and sell orders automatically without a centralizedAn organizational structure wherein a small handful of actors have control over the entire network. In the context of bitcoin,... Read More exchangeA digital marketplace where you can buy and sell cryptocurrency. Read More. AMMs do not require an order book and usually do not use traditional currency pairs. Instead, each trade involves two “tokens” swapped for each other at a price set by the AMM’s algorithms. AMMs typically have lower fees than traditional exchanges, making them attractive to traders who want to minimize costs.
