Intermediate
Blockchain & Web3
Q54 / 100
What is an "Automated Market Maker" (AMM)?
Correct! Well done.
Incorrect.
The correct answer is A) A decentralized exchange mechanism that uses liquidity pools and a pricing formula to facilitate trades without traditional order books
A
Correct Answer
A decentralized exchange mechanism that uses liquidity pools and a pricing formula to facilitate trades without traditional order books
Explanation
AMMs like Uniswap use mathematical formulas (e.g., constant product x*y=k) and liquidity pools to determine prices and execute trades automatically, without matching buyers and sellers directly.
Progress
54/100