LEGACY.XRP
Testnet
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Sheet 05 · 6 tools

AMM

Automated Market Maker pools: create, deposit, withdraw, bid, vote.

Margin note — new here? Start with this

An Automated Market Maker (AMM) is a pool holding two assets that anyone can trade against — the pool itself quotes prices from the ratio of what it holds. People who deposit into the pool (liquidity providers) receive LP tokens, which are receipts for their share of the pool and its trading fees. XRPL's AMMs are built into the protocol and work alongside the order-book DEX: trades automatically take the better price.

An AMM is like a neighborhood currency-exchange kiosk that a group of neighbors stocked together. Anyone can walk up and swap at the posted rate, the kiosk adjusts its rate after every swap based on what is left in the till, and the neighbors who stocked it split the small fee every customer pays.
Start here: AMM Pool Info