DeFi Blog

Automated Market Makers on PulseChain

Automated Market Makers on PulseChain

Automated Market Makers (AMMs) are revolutionizing decentralized finance (DeFi) on PulseChain by providing seamless and continuous trading without the need for traditional order books. Utilizing liquidity pools, where users deposit pairs of tokens, AMMs facilitate trades based on mathematical formulas that dynamically adjust prices according to supply and demand. This method ensures liquidity and efficiency in transactions, minimizing the impact of market volatility. PulseChain's advanced blockchain infrastructure, characterized by high throughput and low transaction fees, enhances the functionality of AMMs. Liquidity providers earn a share of transaction fees, incentivizing them to contribute to the liquidity pools.