RelayChain DeFi Academy
Everything you need to know about DeFi.
What is DeFi (Decentralized Finance)?
What is a DEX (Decentralized Exchange)?
A Decentralized exchange (DEX) is a crypto exchange which provides transactions by using a smart contract contract. It uses a AMM to trade against a Liquidity Pool.
What is an AMM (Automated Market Maker)?
An Automated Market Maker (AMM) is a DEX protocol that uses a formula to calculate a price. Depending on the protocol this formula can vary. One of the key parts in the formula is Liquidity and Liquidity pools. The AMM uses a smart contract to interact with a Liquidity pair for example RELAY/wMATIC.