What are AMMs in decentralized exchanges?

[callie Morgan]

In decentralized exchange development, AMM means automated market maker. It is a system that lets people trade tokens without needing a buyer or seller on the other side. Instead, they trade with a pool of tokens. The price changes based on how much is in the pool. AMMs are used in most decentralized exchanges today because they make trading simple and fast for users without needing an order book.