Skip to main content
Learn

What Is the Role of an Automated Market Maker (AMM) in a DEX for Perpetual Futures?

AMMs use liquidity pools and formulas to automate pricing, funding rates, and trade execution for futures.
Greeks.Live06.11.25

What Is the Role of an Automated Market Maker (AMM) in a DEX for Perpetual Futures?

An AMM replaces the traditional order book and market maker with a liquidity pool and a mathematical formula. For perpetual futures, the AMM calculates the synthetic price, manages the funding rate mechanism, and facilitates the leveraged trades.

Users trade against the pool, which is funded by liquidity providers. The AMM smart contract ensures continuous liquidity and automated price discovery.

How Do Automated Market Makers (AMMs) in Options Trading Handle Liquidity Risk?
How Do Funding Rates Work in Perpetual Swap Contracts?
How Do Centralized Exchanges (CEXs) Manage Slippage Differently than AMMs?
What Is the Relationship between Perpetual Futures Funding Rates and a “Flight to Quality”?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.