AMM Pool
Also known as: liquidity pool, automated market maker pool, dex pool
An AMM pool is a smart contract-based liquidity pool that facilitates decentralized trading without traditional order books.
An AMM (Automated Market Maker) pool is a key component of decentralized exchanges (DEXs), where liquidity is provided by users rather than market makers. Each AMM pool holds a pair (or more) of tokens and uses a mathematical formula—such as the constant product formula (x*y=k)—to price trades based on supply and demand. Traders interact with the smart contract directly, swapping tokens instantly. Liquidity providers earn fees from trades in return for supplying their tokens to the pool. AMM pools underpin popular platforms like Uniswap, SushiSwap, and Curve.