# AMM #### What is an AMM? An [**Automated Market Maker (AMM)**](https://developers.stellar.org/docs/learn/encyclopedia/sdex/liquidity-on-stellar-sdex-liquidity-pools#automated-market-makers-amms) is a decentralized protocol that facilitates asset exchanges without relying on a traditional order book. Instead of using buy and sell orders, [AMMs ](https://stellar.org/blog/developers/introducing-automated-market-makers-on-stellar?locale=en)employ mathematical formulas to determine asset prices based on the relative quantities within their liquidity pools. Soroswap.Finance operates as an AMM with its own [liquidity pools](https://docs.soroswap.finance/01-concepts/02-pools), distinct from other AMMs like Stellar Classic DEX or Phoenix. Soroswap.Finance ensures that asset swaps are managed autonomously and efficiently, maintaining liquidity and price stability through its decentralized framework. To understand [How Soroswap AMM Works](https://docs.soroswap.finance/01-protocol-overview/01-how-soroswap-works). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.soroswap.finance/additional-resources/01-concepts/amm.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.