An automated market maker is like a robot stockbroker that never sleeps. It's a type of decentralized exchange that uses algorithms to automatically set the price of a particular token based on supply and demand.
The idea is that instead of relying on human market makers to set prices and provide liquidity, an automated market maker can do it all automatically, 24/7. This makes it easier for people to trade cryptocurrencies without having to worry about finding a buyer or seller on the other end.
Example
"I just discovered this new automated market maker that lets me trade any ERC-20token without having to worry about slippage."
"Automated market makers are revolutionizing the way we trade crypto. No more having to deal with order books and limit orders!"
noun | aw·tuh·mey·tid mahr·kit mey·ker
A robot that takes your shitcoins and turns them into slightly different shitcoins, all while skimming a little off the top. AMMs are the unsung heroes of the DeFi world, providing liquidity and enabling degenerates to gamble 24/7 on the latest food-themed memecoins.
Example
"I just dumped my life savings into an AMM that lets me trade SHIB for ELON. What could possibly go wrong?"
"Bro, have you tried this new AMM on Polygon? The slippage is so low, it's like trading on greased-up rails."
