AMM
An AMM is a decentralized exchange model that uses liquidity pools and formulas instead of a traditional order book.
Category
DeFi Liquidity
These terms describe automated pools where users deposit assets and earn fees while taking price divergence risk.
How to recognize this theme
Terms you see when people provide assets to a decentralized exchange.
In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.
Educational context
These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.
Liquidity Pool
A liquidity pool is a smart-contract reserve of tokens that traders can swap against.
LP Token
An LP token represents a user's share of assets deposited into a liquidity pool.
Impermanent Loss
Impermanent loss is the opportunity cost that can occur when pooled token prices move apart.