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AMMs — The Swap Engine Behind the $GAME

Ever wondered how tokens get swapped in DeFi without any human in the middle?
Meet the AMM (Automated Market Maker) — your always-on, math-powered trading buddy.

⚡ TL;DR: You trade tokens with a pool, not a person. The smart contract sets the price and takes a small fee. That's it.

🚀 30-Second Tour: How It Actually Works​

  1. Pool Party: Tokens (like $GAME & $AO) live in a shared pool.
  2. Math Boss: A formula (yup, x * y = k) calculates prices on the fly.
  3. No Middlemen: No need for buyers/sellers to match. The pool handles it.
  4. Tiny Tolls: Every swap pays a small fee — powering the protocol.

📈 Why Prices Move (The Slippage Shuffle)​

  • Constant-Product AMMs (think Uniswap-style) always keep x * y = k.
  • Buy $GAME → the pool holds less $GAME and more $AO → $GAME gets pricier.
  • This dynamic = slippage (prices shift mid-swap) and arbitrage (traders balance AMM prices with the broader market).

🧠 Think of the AMM as a rubber band — pull hard on one side, the other side stretches.

💸 Fees: The Tiny Tolls That Keep Things Running​

Fee tiers you’ll often see:

  • 0.01%–0.05% for ultra-liquid or stable swaps
  • 0.30% — the classic
  • 1.00%+ for exotic or spicy tokens

These fees are taken per swap and routed to the protocol’s stakeholders, treasury, or incentives.
If you're building pools, fee tiers directly shape trader costs and pool earnings.

🛠 Why Builders & Traders Love AMMs​

  • 24/7 Liquidity — No human needed, just smart contracts.
  • Composable Magic — Drop them into dApps, routers, and aggregators.
  • Open-Source Brilliance — Math you can trust, code you can verify.
  • Cross-Chain Friendly — AMMs are everywhere, especially on EVMs.

🌐 Try AMMs Yourself​

Want to see AMMs in action? Check out these live examples:

See how price moves as you swap — the pool math at work in real time.

👉 Next Up​