Top AMM tokens by market capitalization
AMM contains 67 coins with a total market capitalization of $13.63B and an average price change of +2.76%. They are listed in size by market capitalization.
Automated Market Makers (AMMs) are smart contract-based protocols designed to facilitate seamless and automated asset swaps without the need for traditional order books or intermediaries. Leveraging liquidity pools composed of various cryptocurrencies, users can instantly trade, provide liquidity, and earn rewards through yield farming. The heart of AMMs lies in their algorithmic pricing mechanisms, often relying on formulas like the constant product formula seen in Uniswap, which adjusts asset prices according to the ratio of funds in the pool. This approach fosters greater liquidity, but does come with trade-offs including impermanent loss, a phenomenon where providing liquidity could lead to temporary losses in a volatile market.
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| Name | Price | 24h (%) | 7D (%) | Market cap | 24h volume | Supply | Last 24h | Operation | |
|---|---|---|---|---|---|---|---|---|---|
 | $0.0004540 | +4.50% | +35.46% | $0 | $85,321.27 | 0.00 | |||
|  CykuraCYS | $0.006579 | +7.82% | +25.43% | $0 | $175.89 | 0.00 | ||
|  AnimeSwapANI | $0.001060 | +13.51% | +95.51% | $0 | $297.46 | 0.00 | ||
|  sudoswapSUDO | $0.1445 | +0.26% | -20.49% | $0 | $145,697.53 | 0.00 | Trade | |
|  ArdanaDANA | $0.001270 | -18.22% | +7.03% | $0 | $1,195.13 | 0.00 | ||
|  Merchant MoeMOE | $0.07622 | +14.50% | -16.03% | $0 | $38,209.22 | 0.00 | ||
|  ChainflipFLIP | $1.12 | -1.85% | -15.80% | $0 | $1.27M | 0.00 | ||
|  KintsugiKINT | $0.5642 | -6.19% | -32.53% | $0 | $30,726.91 | 0.00 | ||
|  DojoSwapDOJO | $0.01394 | -6.98% | -10.32% | $0 | $273.43 | 0.00 | ||
|  AnyswapANY | $4.64 | +4.97% | -6.20% | $0 | $6.35 | 0.00 | ||
|  NovaDEXNVX | $0.0009531 | +3.16% | +8.57% | $0 | $10,049.29 | 0.00 | ||
|  NominexNMX | $0.006111 | +0.79% | -1.31% | $0 | $1,412.94 | 0.00 | ||
|  LienLIEN | $0.2201 | +1.83% | -15.32% | $0 | $53.34 | 0.00 | ||
|  CoFiXCOFI | $0.004478 | +4.91% | +15.46% | $0 | $353.75 | 0.00 | ||
|  Koi FinanceKOI | $0.01024 | +0.05% | -0.59% | $0 | $54,553.36 | 0.00 | ||
|  RamenSwapRAMEN | $0.001218 | +1.18% | -2.25% | $0 | $516.59 | 0.00 |
FAQ
What exactly is an Automated Market Maker (AMM)?
An AMM is a decentralized protocol that facilitates automatic trading and liquidity provision for cryptocurrencies, eliminating the need for traditional order books. It relies on algorithmic formulas to determine asset prices and allows users to trade, provide liquidity, and earn rewards seamlessly within decentralized exchanges like Uniswap and SushiSwap.
How do Automated Market Makers determine asset prices?
AMMs use mathematical formulas, such as the constant product formula (x*y=k) in Uniswap, to calculate the price of assets based on their relative proportions within liquidity pools. As one asset's demand increases, its price rises in relation to the other asset in the pool, maintaining the overall product of their quantities.
What are the advantages of using Automated Market Makers?
AMMs offer greater accessibility, continuous liquidity, and reduced reliance on traditional market makers. They empower users to participate in trading and liquidity provision without intermediaries. Additionally, they enable efficient token swaps, often at lower fees than centralized exchanges.
What is impermanent loss?
Impermanent loss occurs when providing liquidity to an AMM pool results in temporary losses due to divergent price movements of the assets. If the prices of the pooled assets change significantly, compared to when they were initially provided, the liquidity provider may experience losses when withdrawing their funds.
How can I participate in AMMs and earn rewards?
To participate in AMMs, you can provide liquidity by depositing pairs of cryptocurrencies into a liquidity pool. In return, you earn trading fees and potentially additional rewards from yield farming. However, it's important to note the potential risks, such as impermanent loss, which should be carefully considered before participating in AMMs.
How can investors mitigate impermanent loss when providing liquidity to AMMs?
While impermanent loss cannot be eliminated, there are several strategies to reduce its impact:
-Opt for low-volatility tokens: Providing liquidity for stablecoin pairs or equivalent tokens with minimal price volatility can help avoid impermanent loss. However, this approach may limit potential returns in bullish markets.
-Join larger pools: Larger pools can handle significant trades without significant price impact, reducing the risk of impermanent loss.
-Set a trading range: Platforms like Uniswap allow liquidity providers to set a trading range for their position. Tighter trading ranges offer more safety but may require frequent maintenance as prices fluctuate.
-Adjust liquidity ratios: Protocols like Balancer enable liquidity providers to choose a ratio other than the standard 50/50 for deposited tokens. Setting a more volatile token as a lower position percentage can decrease the risk of impermanent loss.
-Use single-sided pools with insurance: Explore single-sided staking pool positions where liquidity is matched with their native tokens. While earning lower fees, this approach eliminates impermanent loss since only one currency is provided.
-Wait for the exchange rate to normalize: In some cases, impermanent loss may be temporary if the market is volatile. As arbitrage players trade to close price divergences, the pool's token prices can converge with the exchange prices over time.
Are there any security concerns associated with using AMMs?
Yes, there can be security concerns with AMMs, especially related to smart contract vulnerabilities or potential exploits. Users should exercise caution when interacting with AMMs and ensure they are using reputable platforms that have undergone security audits. Using hardware wallets or secure wallets and keeping software up to date can also help reduce risks.
How do AMMs handle price slippage and large trades?
AMMs use the concept of "slippage" to address price fluctuations during trades. Slippage refers to the difference between the expected price of a trade and the executed price. In the case of large trades, AMMs might suffer from higher slippage due to the impact of the trade on the pool's asset ratios, potentially resulting in less favorable prices for the trader.