DEX & Trading
AMM (Automated Market Maker)
A DEX model where prices are set algorithmically against a liquidity pool, not an order book.
By Protocol Signal Research · Research Desk
AMMs (Uniswap, Curve, GMX v1/v2) price assets via a deterministic formula over pooled liquidity. They are simple, permissionless, and capital-efficient for long-tail pairs, but typically wider on majors than CLOBs and exposed to LP impermanent loss.