Automated Market Maker vs Liquidity Pool
Quick comparison to help you distinguish these two crypto terms.
Automated Market Maker
intermediate
fundamentals
An automated market maker is a decentralized protocol that enables cryptocurrency trading using algorithm-controlled liquidity pools instead of traditional order books and human or institutional market makers.
Read full definitionLiquidity Pool
intermediate
fundamentals
A liquidity pool is a smart contract holding reserves of two or more tokens that users deposit to enable decentralized trading, earning a share of transaction fees in return.
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