An automated market maker may be compared to a robot that is always ready to provide you a price between two assets. While Curve, Balancer, and other formulas utilize more complex ones, some, like Uniswap, use simple ones.

By adding liquidity to a liquidity pool, you can become the house in addition to trading without risk when using an AMM. This makes it possible for almost anyone to act as a market maker on an exchange and receive payments for supplying liquidity.

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