AMM definition
Definición
Automated Market Maker, protocol that enables decentralized trading
Uniswaps V3 introduced concentrated liquidity; AMMs democratize trading but suffer from high slippage on illiquid pairs. Evolution: Uniswap V1 (2018) constant product, V2 multi-pool, V3 range orders. Advantages: 24/7, no KYC. Drawbacks: MEV, front-running.
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