An Automated Market Maker (AMM) simultaneously and programmatically posts bid and sell orders to create a market for one or more assets.

AMMs use mathematical formulas to automatically determine the prices at which users can buy and sell assets, based on the available supply and demand. This allows users to trade assets without the need for a traditional centralized exchange or intermediaries.

AMMs are often used in the context of DeFi platforms that offer decentralized exchanges (DEXs) or other financial services, where they provide a way to create and maintain liquidity for the assets being traded.

AMMs can also be used to create and manage other types of financial products, such as stablecoins or lending and borrowing pools.