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27 - DeFi in the Eth2 Metropolis | Haseeb Qureshi

Bankless

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Understanding Automated Market Makers

This chapter reflects on the speaker's initial skepticism towards decentralized exchanges (DEXs) and their evolution, particularly focusing on Automated Market Makers (AMMs) in the DeFi ecosystem. It simplifies the complexities of AMMs, using relatable metaphors to explain how they operate, including the principles of supply, demand, and market equilibrium. The speaker emphasizes learning from past misconceptions while highlighting the significance and flexibility of AMMs in trading diverse assets.

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