Imagine a marketplace that runs on autopilot! An Automated Market Maker (AMM) is a system used in Decentralized Exchanges (DEXs) that provides liquidity, which is essentially the ease with which an asset can be bought or sold. AMMs use smart contracts to automate buying and selling based on pre-defined rules, ensuring there are always buyers and sellers available to trade with. This is different from traditional exchanges that rely on order books.
