Q » What is an AMM liquidity pool?

02 Nov, 2025

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A » An Automated Market Maker (AMM) liquidity pool is a decentralized trading mechanism used in blockchain ecosystems to facilitate the buying and selling of digital assets. It eliminates the need for traditional order books by using smart contracts and liquidity pools, where users contribute token pairs. This approach allows for continuous liquidity, enabling seamless trading operations and efficient price discovery without relying on centralized intermediaries.

Michael

03 Nov, 2025

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All Other Answer

A »An AMM liquidity pool is a decentralized reserve of tokens locked in a smart contract, enabling automated trading on decentralized exchanges. It allows users to provide liquidity and earn fees, while traders can swap tokens at algorithmically determined prices, promoting market efficiency and decentralization.

David

03 Nov, 2025

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