Blocky saysAMMs let you trade against a pool using a formula — no order book or counterparty.
Automated Market Makers (Uniswap) replace buyers-matching-sellers with liquidity pools priced by a formula — classically x * y = k (constant product). Traders swap against the pool; the formula moves the price along a curve. Liquidity providers deposit both assets and earn fees but face impermanent loss. AMMs made permissionless, always-available token trading possible.
Power-ups you unlock
Trade against a pool, not a counterparty
Constant product: x * y = k
LPs deposit pairs, earn fees
Risk to LPs: impermanent loss
Double-Spend Dan attacks — common mistakes
Ignoring impermanent loss as an LP
Large swaps with high slippage on thin pools
Assuming pool price always matches the market
Boss battleExplain how x*y=k sets the price after a swap.
Example code
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<body style="background:#06040d;color:#e6e0ff;font-family:monospace;padding:20px"><pre>pool: 100 ETH * 200000 USDC = k
buy ETH → ETH down, USDC up → price moves along curve
LP earns fees, risks impermanent loss</pre></body></html>