> For the complete documentation index, see [llms.txt](https://wiki.elephant.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wiki.elephant.money/glossary/amm.md).

# AMM

AMM is short for "automated market maker" which is automated system designed to facilitate trading of digital assets on a decentralized exchange, it utilizes a formula called the constant product formula ( X \* Y = K) to determine asset prices.