{"id":20622,"date":"2023-04-13T09:31:05","date_gmt":"2023-04-13T09:31:05","guid":{"rendered":"https:\/\/zebpay.com\/au\/?p=20622"},"modified":"2023-04-13T09:31:06","modified_gmt":"2023-04-13T09:31:06","slug":"what-is-an-automated-market-maker","status":"publish","type":"post","link":"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker","title":{"rendered":"What is an Automated Market Maker?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#History_and_Evolution_of_AMMs\" title=\"History and Evolution of AMMs\">History and Evolution of AMMs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Advantages_of_Using_AMMs_Over_Traditional_Market_Makers\" title=\"Advantages of Using AMMs Over Traditional Market Makers\">Advantages of Using AMMs Over Traditional Market Makers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#How_Do_Automated_Market_Makers_Work\" title=\"How Do Automated Market Makers Work?\">How Do Automated Market Makers Work?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Overview_of_Liquidity_Pools\" title=\"Overview of Liquidity Pools\">Overview of Liquidity Pools<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Explanation_of_the_Constant_Function_Market_Maker_CFMM_Algorithm\" title=\"Explanation of the Constant Function Market Maker (CFMM) Algorithm\">Explanation of the Constant Function Market Maker (CFMM) Algorithm<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#How_do_AMMs_Facilitate_Trades\" title=\"How do AMMs Facilitate Trades?\">How do AMMs Facilitate Trades?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Types_of_Automated_Market_Makers\" title=\"Types of Automated Market Makers\">Types of Automated Market Makers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Constant_Product_Market_Maker_CPMM\" title=\"Constant Product Market Maker (CPMM)\">Constant Product Market Maker (CPMM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Constant_Sum_Market_Maker_CSMM\" title=\"Constant Sum Market Maker (CSMM)\">Constant Sum Market Maker (CSMM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Constant_Mean_Market_Maker_CMMM\" title=\"Constant Mean Market Maker (CMMM)\">Constant Mean Market Maker (CMMM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Hybrid_CFMMs\" title=\"Hybrid CFMMs\">Hybrid CFMMs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Dynamic_Automated_Market_Maker_DAMM\" title=\"Dynamic Automated Market Maker (DAMM)\">Dynamic Automated Market Maker (DAMM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Proactive_Market_Maker_PMM\" title=\"Proactive Market Maker (PMM)\">Proactive Market Maker (PMM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Virtual_Automated_Market_Makers_vAMM\" title=\"Virtual Automated Market Makers (vAMM)\">Virtual Automated Market Makers (vAMM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Comparison_of_various_AMMs_including_Uniswap_Curve_and_Balancer\" title=\"Comparison of various AMMs including Uniswap, Curve, and Balancer\">Comparison of various AMMs including Uniswap, Curve, and Balancer<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Pros_and_Cons_of_Automated_Market_Makers\" title=\"Pros and Cons of Automated Market Makers\">Pros and Cons of Automated Market Makers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Advantages_of_using_AMMs\" title=\"Advantages of using AMMs\">Advantages of using AMMs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Disadvantages_of_AMMs\" title=\"Disadvantages of AMMs&nbsp;\">Disadvantages of AMMs&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-an-automated-market-maker\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>AMMs are the underlying protocol that supports all decentralized exchanges (DEXs). Automated market makers are autonomous trading mechanisms that function without centralized exchanges.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"History_and_Evolution_of_AMMs\"><\/span>History and Evolution of AMMs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Vitalik Buterin introduced automated market makers in 2017. The first AMM models were launched four years later. AMMs have made it possible for decentralized finance to exist and significantly improve the capabilities of decentralized exchanges.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Using_AMMs_Over_Traditional_Market_Makers\"><\/span>Advantages of Using AMMs Over Traditional Market Makers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Only high-net-worth individuals or companies could become liquidity providers for traditional market makers. On the other hand, any entity can become a liquidity provider, but it must meet all the requirements coded into the <a href=\"https:\/\/zebpay.com\/au\/blog\/smart-contracts-on-the-blockchain\" target=\"_blank\" rel=\"noreferrer noopener\">smart contract<\/a>. Balancer, Uniswap, and Curve are examples of automated market makers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Do_Automated_Market_Makers_Work\"><\/span>How Do Automated Market Makers Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_Liquidity_Pools\"><\/span>Overview of Liquidity Pools<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Liquidity was a big challenge for decentralized exchanges before AMMs. The number of buyers and sellers was small in DEXs as it was a new technology. It was hard to find users to trade on DEXs regularly. Automated market makers fixed this problem of limited liquidity by creating liquidity pools.<\/p>\n\n\n\n<p>AMMs offer liquidity providers (LPs) incentives to supply crypto assets to these pools. Crypto trading becomes easier with more crypto assets or liquidity in these pools.<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/au\/blog\/crypto-trading-strategies\" target=\"_blank\" rel=\"noreferrer noopener\">Crypto trading Strategies<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Explanation_of_the_Constant_Function_Market_Maker_CFMM_Algorithm\"><\/span>Explanation of the Constant Function Market Maker (CFMM) Algorithm<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Constant function market makers (CFMMs) such as constant sum market makers, constant mean market makers, and constant product market makers are first-generation AMMs made popular by Uniswap, Curve, and other protocols. These automated market makers are based on a constant function. This function means the combined asset reserves of trading pairs do not change. Users trade against Smart contracts instead of directly trading with a counterparty.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_AMMs_Facilitate_Trades\"><\/span>How do AMMs Facilitate Trades?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Automated market makers function similarly to an order book exchange in that there are trading pairs. However, users do not need a counterparty to make a trade. Instead, they interact with smart contracts that create the market for you.<\/p>\n\n\n\n<p>Crypto trades occur directly between user wallets on a decentralized exchange. These transactions are also known as peer-to-peer (P2P) transactions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Automated_Market_Makers\"><\/span>Types of Automated Market Makers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"384\" src=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/04\/Types-of-Automated-Market-Makers-1024x384.jpg\" alt=\"Types of Automated Market Makers\" class=\"wp-image-20624\" srcset=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/04\/Types-of-Automated-Market-Makers-1024x384.jpg 1024w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/04\/Types-of-Automated-Market-Makers-300x113.jpg 300w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/04\/Types-of-Automated-Market-Makers-768x288.jpg 768w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/04\/Types-of-Automated-Market-Makers.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Constant_Product_Market_Maker_CPMM\"><\/span>Constant Product Market Maker (CPMM)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A constant product market maker (CPMM) is the first type of Constant Function Market Maker. CPMM was popularized by the first AMM DEX, Bancor. CPMMs use the function x*y=k. This equation establishes a range of prices for two crypto tokens based on the available liquidity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Constant_Sum_Market_Maker_CSMM\"><\/span>Constant Sum Market Maker (CSMM)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The second type of CFMM is a constant-sum market maker (CSMM). CSMMs are ideal for zero-price impact trades but do not provide infinite liquidity. CSMMs follow the function, x+y=k. CSMM allows arbitrageurs to drain their reserves if the off-chain price between the tokens is not 1:1.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Constant_Mean_Market_Maker_CMMM\"><\/span>Constant Mean Market Maker (CMMM)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The constant-mean market maker is the third type of CFMM. It enables AMMs to have more than two cryptos, outside the standard 50\/50 distribution. For a liquidity pool of three crypto assets, the equation will be (x*y*z)=k. This function enables variable exposure to different assets in the liquidity pool.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Hybrid_CFMMs\"><\/span>Hybrid CFMMs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>New advanced hybrid CFMMs have emerged as AMM-based liquidity evolves. Hybrid CFMMs combine multiple functions to achieve specific results, such as a reduced price impact on traders. Curve AMMs combine CSMM and CPMM using an advanced formula to create more liquidity, bringing down price impacts within a range of trades.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dynamic_Automated_Market_Maker_DAMM\"><\/span>Dynamic Automated Market Maker (DAMM)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Sigmadex leverages Chainlink price feeds using a DAMM model to help dynamically distribute liquidity. Dynamic automated market makers can become more robust market makers by adapting to changing crypto market conditions. They concentrate liquidity near the market price and increase capital efficiency during periods of low volatility. They expand during periods of high volatility to protect crypto traders from impairment losses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Proactive_Market_Maker_PMM\"><\/span>Proactive Market Maker (PMM)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>DODO is a liquidity provider that uses a model known as PMM to mimic the human-market decision-making behaviors of a traditional order book to increase liquidity on its protocol. This protocol uses accurate market prices from Chainlink price feeds to adjust the price curve of each crypto asset in response to market changes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Virtual_Automated_Market_Makers_vAMM\"><\/span>Virtual Automated Market Makers (vAMM)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Virtual automated market makers like Perpetual Protocols mitigate impermanent losses and minimize price impacts. This model uses the same equation, x*y=k, but traders deposit collateral into a smart contract instead of a liquidity pool.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Comparison_of_various_AMMs_including_Uniswap_Curve_and_Balancer\"><\/span>Comparison of various AMMs including Uniswap, Curve, and Balancer<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Uniswap, Balancer, and Curve are the three dominant AMM models today. Uniswap allows users to create a liquidity pool with a 50\/50 ratio and has become the most popular AMM model on the Ethereum network. Balancer tests the limits of Uniswap by enabling users to create dynamic <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\" target=\"_blank\" rel=\"noreferrer noopener\">liquidity pools<\/a> of up to eight different crypto assets in any ratio. Curve specializes in creating liquidity pools of similar crypto assets, such as <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-stablecoin\" target=\"_blank\" rel=\"noreferrer noopener\">stablecoins<\/a>. The Curve platform offers some of the lowest rates and most efficient trades.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pros_and_Cons_of_Automated_Market_Makers\"><\/span>Pros and Cons of Automated Market Makers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_using_AMMs\"><\/span>Advantages of using AMMs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Lower Barrier to Entry<\/strong><\/p>\n\n\n\n<p>AMMs allows users to trade on the DEX protocol without account verification, but they must have a <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-crypto-wallet\" target=\"_blank\" rel=\"noreferrer noopener\">crypto wallet<\/a>. Users can become LPs and earn passively through their investments in the liquidity pool.<\/p>\n\n\n\n<p><strong>Provides greater transparency<\/strong><\/p>\n\n\n\n<p>AMMS provides greater transparency for each crypto trade by facilitating transactions on the blockchain network. AMMs enable users to control their crypto assets when trading.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disadvantages_of_AMMs\"><\/span>Disadvantages of AMMs&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Impermanent loss<\/strong><\/p>\n\n\n\n<p>This loss occurs when the price ratio of pooled crypto assets fluctuates. The higher the market fluctuation, the higher the loss incurred. Impermanent losses usually occur in pools with volatile crypto assets.<\/p>\n\n\n\n<p><strong>Volume and slippage<\/strong><\/p>\n\n\n\n<p>The trade volumes on decentralized exchanges have picked up. Users suffer extreme slippage rates, especially with large orders, as DEXs function without an order book and market maker.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>AMMs are financial tools unique to <a href=\"https:\/\/zebpay.com\/au\/blog\/an-introduction-to-defi\" target=\"_blank\" rel=\"noreferrer noopener\">decentralized finance (DeFi)<\/a>. This new technology does not rely on traditional interaction between traders. AMMs are always available for crypto trading and are decentralized in nature. No one entity controls this system, and any user can participate and build new solutions.<\/p>\n\n\n\n<p>AMMs are still in their nascent stage. AMMs like Curve, Uniswap, and Balancer are elegant in design but have limited features. There are likely to be more innovative AMM models in the future. These innovative models will lower fees and provide better liquidity for crypto traders.<\/p>\n\n\n\n<p>You can learn more about crypto on <a href=\"https:\/\/zebpay.com\/au\/blog\" target=\"_blank\" rel=\"noreferrer noopener\">ZebPay blogs.<\/a> Level up your crypto trading journey using ZebPay\u2019s brand new upgrade.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color wp-element-button\" href=\"https:\/\/connect.zebpay.com\/account\/login?returnUrl=%2Fconnect%2Fauthorize%2Fcallback%3Fclient_id%3Deee7baaa-9d6c-43f1-9eb6-8174f62cd244%26redirect_uri%3Dhttps%253A%252F%252Fzebpay.com%252Fapp%26response_type%3Did_token%2520token%26scope%3Dopenid%2520profile%2520wallet%253Atransactions%253Aread%2520trade%253Aread%2520trade%253Acreate%2520wallet%253Aaddress%253Acreate%2520wallet%253Aaddress%253Aread%2520wallet%253Atransactions%253Asend%26state%3D73e50f6c6e4f4a5a950f8f18bb90b909%26nonce%3D8aa6db811a4c4e57a66430e4b8a16a46\" target=\"_blank\" rel=\"noreferrer noopener\">Trade Now<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>AMMs are the underlying protocol that supports all decentralized exchanges (DEXs). Automated market makers are autonomous trading mechanisms that function without centralized exchanges. History and Evolution of AMMs Vitalik Buterin introduced automated market makers in 2017. The first AMM models were launched four years later. AMMs have made it possible for decentralized finance to exist [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":20623,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[16],"class_list":["post-20622","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-crypto"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/comments?post=20622"}],"version-history":[{"count":1,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20622\/revisions"}],"predecessor-version":[{"id":20625,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20622\/revisions\/20625"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media\/20623"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media?parent=20622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/categories?post=20622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/tags?post=20622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}