Do repost and rate:
AMM is (Automated Market Maker)
AMM is a decentralized exchange
Every user can put their tokens into the liquidity pool
Become a small market maker and enjoy transaction fee bonus
At the same time, it also faces the risk of "permanent loss"
All AMM transaction data is transparent
The AMM model was first implemented by Bancor
and Uniswap was the first model successfully implemented
Impermanence loss
As long as the market price of the tokens in the AMM pool deviates from any party, permanent losses will occur
AMM pool cannot automatically adjust the exchange rate
