## How Automated Market Makers Enable Seamless Trading in Decentralized Exchanges
The backbone of modern decentralized exchanges lies in a powerful mechanism: the automated market maker (AMM). This innovation fundamentally transformed how crypto assets change hands without requiring traditional middlemen or order books.
### The Core Mechanism Behind AMM
An AMM functions as a self-executing trading protocol powered by smart contracts. Instead of matching buyers and sellers like traditional exchanges, it creates liquidity pools—collections of digital assets locked by community participants. When
The backbone of modern decentralized exchanges lies in a powerful mechanism: the automated market maker (AMM). This innovation fundamentally transformed how crypto assets change hands without requiring traditional middlemen or order books.
### The Core Mechanism Behind AMM
An AMM functions as a self-executing trading protocol powered by smart contracts. Instead of matching buyers and sellers like traditional exchanges, it creates liquidity pools—collections of digital assets locked by community participants. When
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