Gemini-What Are Automated Market Makers

Automated market makers (AMM) facilitate the decentralized exchange of digital assets using liquidity pools rather than conventional market order books.

What Is an Automated Market Maker (AMM)?

Instead of relying on the traditional buyers and sellers in a financial market, AMMs keep the DeFi ecosystem liquid 24/7 via liquidity pools.

What Are Automated Market Makers?

Gemini-Defi AMM How Liquidity Provider Tokens Work (1)

Learn how crypto liquidity providers, pools, and tokens increase available liquidity in the DeFi ecosystem, and bring functionality to AMMs like Uniswap.

How Liquidity Provider Tokens Work

When tokens are deposited into a crypto liquidity pool, the platform automatically generates a new token that represents the share the depositor owns of that pool. This is called a liquidity provider (LP) token, and it can be used for a multitude of functions both within its native platform and other decentralized finance apps.

How Liquidity Provider (LP) Tokens Work

Explore our collection of Cryptopedia articles related to AMM. Discover new topics and the latest insights.