Automated market makers, or AMMs, are a key part of DeFi. They allow users to trade tokens without an intermediary. AMMs use a mathematical formula to set the exchange rate between two tokens. This formula is based on the amount of each token in a liquidity pool. Users can add tokens to the pool to earn a fee. The fee is a percentage of the trading volume. AMMs are different from traditional exchanges. They are transparent and decentralized. Anyone can use them to trade tokens. #DeFiEducation #Blockchain #Liquidity