The AMM Concept
Watch how Automated Market Makers work — animated token pools, the constant product curve, and a live comparison with traditional order books.
🌊 Animated Token Pools
Two token reservoirs connected by the x·y=k curve. Click "Swap" to watch tokens flow between tanks. Each swap moves along the curve — watch the price change in real-time.
ETH Reserve
100.0
USDC Reserve
300,000
k (constant)
30,000,000
ETH Price
$3,000.00
Swaps Done
0
Notice: Each swap makes the next one more expensive in the same direction. That's slippage — the curve gets steeper as you deplete one side. Try doing 5 consecutive ETH→USDC swaps and watch the price climb.
📊 Order Book vs AMM — Side by Side
Traditional exchanges use order books with discrete buy/sell orders. AMMs use a mathematical curve. Watch both handle the same trade.
Key difference: Order books can have gaps (no liquidity at certain prices). The AMM curve always provides a price — but it gets exponentially worse for large trades. Order books can offer zero slippage for small trades if there's a matching limit order.