Automated market maker — a contract that quotes prices algorithmically from its own reserves rather than matching orders.
Last verified 13 September 2026 · written by the DexLadder team
What it means
Automated market maker — a contract that quotes prices algorithmically from its own reserves rather than matching orders.
Why it matters when you trade
The AMM is why decentralised trading works at all: it makes liquidity provision passive and permissionless. Different curves suit different assets — constant product for volatile pairs, StableSwap-style curves for assets meant to trade near parity. The curve you are trading against determines your price impact far more than the headline size of the pool.
Worked example
The same $100,000 swap costs multiples more in a constant-product pool than in a stable-curve pool of equal size, because the curves are shaped differently around parity.
See it on live markets
DexLadder runs amm against live market and pool data, with simulated capital, so you can watch it act on an order instead of reading about it — no account, no wallet, nothing installed.