What an automated market maker is, and how Soroswap’s constant-product pools on Soroban hold their own liquidity, separate from the Stellar classic DEX.
An Automated Market Maker (AMM) is a decentralized protocol that facilitates asset exchanges without relying on a traditional order book. Instead of using buy and sell orders, AMMs 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, distinct from other venues like the Stellar Classic DEX. 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.
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