DeFi AMM – Automated Market Maker Basics

When working with DeFi AMM, a decentralized finance protocol that swaps assets using smart contracts instead of traditional order books. Also called Automated Market Maker, it depends on Liquidity Pools to hold the funds that traders exchange.

Most Decentralized Exchanges (DEXs) build their core on the AMM model, letting anyone add assets to a pool and earn Yield Farming rewards. This creates a self‑balancing market where prices adjust automatically based on pool composition, and liquidity providers are compensated for their capital.

Key Concepts Behind AMM Design

The AMM framework ties together three main ideas: automated price determination, shared pool liquidity, and incentive mechanisms. By linking price curves to pool ratios, an AMM eliminates the need for order matching, while yield farming keeps the pools attractive for contributors. Together they enable seamless, permissionless trading across a wide range of tokens.

Below you’ll find in‑depth reviews, token analyses, and airdrop guides that explore how these components shape the DeFi landscape today.

SushiSwap v3 Polygon Review: In‑Depth Look at the DeFi DEX on Polygon

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SushiSwap v3 Polygon Review: In‑Depth Look at the DeFi DEX on Polygon

A detailed review of SushiSwap v3 on Polygon, covering fees, rewards, liquidity provision, security, and a side‑by‑side comparison with Uniswap for informed DeFi decisions.

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