Does the Price-Time Priority Rule Apply to Automated Market Makers (AMMs)?

No, the price-time priority rule does not apply to AMMs. AMMs use a continuous pricing function based on the ratio of assets in the liquidity pool.

Trades are executed immediately against the pool based on the smart contract's logic, not against a queue of competing limit orders. The concept of "time priority" is replaced by the sequence of transactions as determined by the blockchain's block producer.