Glossary
AMM (automated market maker)
Also written or said as: automated market maker, amm pool
An exchange where you trade against a pool of tokens and a formula sets the price.
There is no order book and no person on the other side. A pool holds two tokens, for example SOL and a memecoin, and a formula moves the price as people buy from it and sell into it. PumpSwap, Raydium and Meteora all run AMM pools, and that is where a pump.fun coin trades after it graduates.
Learn it properly inGraduation: what happens and what changesLaunchpads and the bonding curve · 4 min readThis guide is for learning. It is not financial advice. Most memecoins go to zero and most people who trade them lose money. Only ever trade what you can afford to lose.