Virtual AMM (vAMM)
By CoinGecko | Updated on Aug 13, 2021
An automated market maker (AMM) is a system that uses automated trading to offer liquidity to the exchange in which it operates. As the “virtual” part of the name implies, the vAMM functions similarly like an AMM but does not contain an actual asset pool. The real asset is instead stored in a smart contract vault that keeps track of all of the vAMM's collateral.
Related Terms
Circulating Supply
An approximation of the number of coins or tokens that are currently not locked and available for public transactions.
Liquidity
The ease of which cryptocurrency can be bought and sold without impacting the overall market price.
Limit Order / Limit Buy / Limit Sell
Orders placed by traders to buy or sell a cryptocurrency when a certain price is reached
Impermanent Loss
Temporary loss of funds due to volatility leading to divergence in price between token pairs provided by liquidity providers.
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