Term used in decentralized financial systems (DeFi) for the providers of liquidity (liquidity pool). Similar to securities traders or market makers in
traditional stock exchange trading, AMMs offer tokens, which are smart contract bundles and automatically execute when there is a corresponding demand. AMMs may thus be conceived as an alternative to the order books familiar to centralized stock exchange trading.
More Term Definitions
- Electronic Banking Internet Communication Standard (EBICS) Definition
- Goal-Based Investment Definition
- Return On Product Development Expense (RoPDE) Definition
- Decentralized Autonomous Organization (DAO) Definition
- Public Key Definition