Automated Market Maker (AMM)

An economic tool unique to decentralized finance, and to the cryptocurrency of ethereum. AMMs make the trading of digital assets easier through the usage of liquidity pools, and bypass liquidity problems that are common with many cryptocurrencies by incentivizing liquidity providers to supply these pools with their  crypto assets. As these pools fill up with more assets, the trading and liquidity of cryptocurrencies becomes easier, and makes cryptocurrencies more accessible as a trading option.