GlossaryAutomated market maker (AMM)
Automated market maker (AMM) is the algorithm a decentralized exchange uses to price swaps from a liquidity pool, commonly the constant-product formula x*y=k, instead of matching orders on an order book.
AMMs let anyone trade instantly against pooled liquidity. Uniswap popularized the model that now underpins most on-chain trading, including on Base.