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impermanent loss

How Automated Market Makers Work: AMMs and Impermanent Loss

September 18, 2026 by Bruno

AI-generated editorial image: Geometric balancing stones beside an open notebook on a natural oak desk

Learn how automated market makers use liquidity pools and constant product formulas to price trades, and how to calculate impermanent loss.

Categories Capital Markets, Market Education Tags automated market makers, cryptocurrency trading, decentralized finance, impermanent loss, investing basics, liquidity pools

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