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Q » Why do decentralized exchanges require automated market makers?
02 Nov, 2025
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A » Decentralized exchanges require automated market makers (AMMs) to facilitate trading without relying on traditional order books. AMMs use smart contracts to create liquidity pools, enabling users to trade directly from these pools. This increases liquidity, reduces slippage, and ensures continuous market availability, even with lower trading volumes. AMMs democratize market participation, allowing anyone to provide liquidity and earn fees, thereby enhancing the efficiency and accessibility of decentralized exchanges.
03 Nov, 2025
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