@levifelton
Uniswap’s automated market maker (AMM) model differs from traditional exchanges by removing order books entirely and using liquidity pools to facilitate trades. In traditional exchanges, buyers and sellers are matched through an order book, relying on market makers to provide liquidity. Uniswap, on the other hand, allows anyone to add liquidity to its pools and users trade directly against these pools. This system relies on mathematical formulas to set prices based on the ratio of assets in the pool, providing a more decentralized method of exchanging assets without intermediaries. This innovation allows Uniswap to operate without a central exchange, offering a truly decentralized alternative.
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