# Automated Market Makers (AMM) Automated Market Makers (AMMs) are decentralized exchange protocols that enable trading of digital assets without a traditional order book. AMMs use a mathematical formula to price assets, typically utilizing liquidity pools comprised of token pairs. Users can trade against these pools, with prices adjusting according to the pool's balance. This mechanism facilitates continuous liquidity and allows users to earn fees by providing liquidity. AMMs have become a fundamental component of decentralized finance (DeFi), offering seamless and permissionless trading experience. --- # 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.ax11.org/automated-market-makers-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.