AMM (Automated Market Maker)
A DEX mechanism that prices assets using mathematical formulas and liquidity pools, not order books.
In depth
Most use constant-product formula (x*y=k pioneered by Uniswap). Liquidity providers deposit token pairs, earn fees, but face "impermanent loss" if pool ratio shifts. Curve's stableswap optimizes for low-slippage stablecoin swaps.