
How market makers work: AMM and PMM
The understanding of how market makers work and how liquidity is generated helps users to make more profitable swaps and discover new opportunities in DeFi. Key takeaways: — AMMs automate crypto trading on decentralized exchanges (DEXes), removing the need for traditional buy-sell based trading. — Central to AMMs, liquidity pools are collections of funds locked in a smart contract, facilitating efficient token swaps and price determination. — In AMMs, users trade with a smart contra








