What is AMM (Automated Market Making)?
AMM (Automated Market Making) is an algorithm‑based liquidity provisioning mechanism that automatically provides continuous bid/ask quotes through a pricing formula.
CoinEx employs a hybrid model of AMM and order book, where funds in the liquidity pool are automatically converted to order book listings, enhancing market depth and trading experience.
By providing liquidity to the pool, users can become market makers and receive a proportional share of the trading fee rewards rebated by CoinEx.
Features of CoinEx AMM
1. Earn passive income via AMM
When you provide liquidity to a pool, your funds will automatically participate in market making, where 50% of the trading fees generated in the market will be distributed to liquidity providers based on their share of the pool, enabling stable and automated earnings.
2. Accumulate and claim earnings hourly
Market‑making fee rewards are settled every hour and automatically credited to your AMM account. When you remove your liquidity, you can claim all accumulated rewards at once.
3. Free and flexible access
Assets can be transferred between your Spot Account and AMM Account in real time by adding or removing liquidity. There is no limit on the number of times liquidity can be added daily for a single market, and all operations are free of charge.
Risk Warning
Funds in the AMM account will be added to the liquidity pool for automated market making. Price fluctuations may cause impermanent loss, leading to changes in asset quantity upon liquidity withdrawal. While impermanent loss typically narrows as prices revert, it can still affect final earnings. Please fully understand the mechanisms of AMM and associated risks before providing liquidity.
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