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BitMart Launches AMM Automated Market Making Tool, Introducing New Liquidity Yield Method

Analysis4hrs agoUpdate Wyatt
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With the maturation of the Automated Market Maker (AMM) mechanism, a more open model has emerged in the market: it does not rely on manual monitoring or complex strategies. Users only need to provide assets, and the system can automatically complete the market-making process and share the transaction fee revenue. Based on this concept, BitMart launched the AMM Automated Market Maker Tool (AMMbot), aiming to transform “market making” from an exclusive capability of professional institutions into a method that ordinary users can also easily participate in, making liquidity building itself a part where users can engage and share in the profits.

What Exactly Does AMM Do? Explained in One Sentence

To put it in one sentence: You provide capital, the system automatically places orders for you, the market generates trades, and you receive a share of the fees.

In the traditional order book model, market making means constantly manually placing buy and sell orders and frequently adjusting prices based on market fluctuations, which requires significant experience and effort. The logic of AMM is more straightforward—users deposit two assets (e.g., BTC and USDT) simultaneously into a liquidity pool. The system automatically generates buy and sell orders across multiple price ranges based on an algorithm and adjusts the asset ratio within the pool in real-time according to market transaction conditions.

The entire process requires no frequent operations or manual monitoring. The system continuously provides two-way depth in the market, keeping the trading pair in a tradable state.

In terms of pricing logic, AMM employs a constant product mechanism, maintaining a balanced ratio between the two assets in the pool through a mathematical relationship. For example: If a pool contains BTC and USDT, when someone buys BTC, the BTC in the pool decreases while USDT increases. Because the product of the two must remain constant, the price of BTC naturally rises, and vice versa. The price is not set manually but is naturally formed by the asset ratio within the pool. This mechanism ensures market continuity and stability across different trading directions.

Optimized Design of AMMbot at the Product Level

While introducing the AMM mechanism, BitMart has made targeted optimizations to the product experience to better align with usage habits in a centralized trading environment.

1. Automatic Order Placement, Continuous Depth Provision

The system automatically places buy and sell orders across different price ranges to maintain market liquidity.

2. Post-Only Protection Mechanism

All AMM orders are “post-only,” meaning they will not actively take liquidity, avoiding additional transaction costs.

3. Automatic Profit Accumulation

Transaction fees generated are credited to the liquidity pool in real-time, with no need for manual claiming.

4. Free Deposit and Withdrawal, No Additional Fees

Users can add or withdraw liquidity at any time, and there is no limit on the number of times liquidity can be added to a single market per day.

From a practical experience perspective, AMMbot functions more like an automatically running market-making engine. Users do not need to focus on order placement details; they only need to decide whether to participate and the scale of their investment based on their own strategy. The system will then continuously execute the market-making logic in the background.

Participation Method and Supported Tokens

After understanding the mechanism and product logic, participation itself is not complicated.

Users enter the spot trading pair page where the AMM function is available, select the corresponding market, click “Add Liquidity,” and follow the system prompts to simultaneously deposit the two required assets to complete the process. The system automatically calculates the required amounts based on the current pool ratio. After confirmation, the funds enter the liquidity pool, and the system automatically executes the order placement and asset allocation logic.

BitMart Launches AMM Automated Market Making Tool, Introducing New Liquidity Yield Method

BitMart Launches AMM Automated Market Making Tool, Introducing New Liquidity Yield Method

Currently, AMMbot has been launched on several spot trading pairs, including BMX/USDT, ZAMA/USDT, PEPE/USDT, SHIB/USDT, ICP/USDT, DOGE/USDT, LUNC/USDT, YEC/USDT, etc. The specific supported range is subject to the display on the page.

When the Market Trades, You Are Also Participating

In the past, many people were accustomed to positioning themselves as “traders”—buying, selling, and waiting for price changes. However, behind every smooth transaction lies the continuous support of buy and sell orders.

What AMMbot does is simple: when the market is trading, the capital you provided is also operating within it.

It doesn’t require directional judgment like short-term trading, nor does it rely on frequent operations. More often, it is a way of participating that “operates along with the market”—when the market is active, liquidity is in motion; when liquidity is in motion, profits naturally follow.

This is also a change brought about by the AMM mechanism: you are not just a user of the market; you can also be a part of it.

About BitMart

BitMart is a globally leading digital asset trading platform with over 13 million users worldwide. BitMart consistently ranks high on CoinGecko, offering over 1,700 trading pairs with competitive fees. BitMart always adheres to the principles of continuous innovation and financial inclusion, committed to providing a seamless trading experience for global users. To learn more about BitMart, please visit the website, follow X (Twitter), or join Telegram for updates, news, and promotions. Download the BitMart App to trade anytime, anywhere.

Risk Warning:

Using BitMart services involves assuming all risks yourself. All cryptocurrency investments, including wealth management products, are highly speculative and involve significant risk of loss. Past, hypothetical, or simulated performance does not necessarily indicate future results.

The above information is for reference only and should not be considered as advice to buy, sell, or hold any financial asset. All information is provided in good faith. However, we make no express or implied representations or warranties regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information.

All cryptocurrency investments (including wealth management products) are inherently highly speculative and accompanied by significant risk of loss. Past performance, hypothetical results, or simulated data do not necessarily represent future results. The value of digital currencies may rise or fall, and buying, selling, holding, or trading digital currencies may involve substantial risks. Before trading or holding digital currencies, you should carefully evaluate whether such investments are suitable for you based on your investment objectives, financial situation, and risk tolerance. BitMart does not provide any investment, legal, or tax advice.

This article is sourced from the internet: BitMart Launches AMM Automated Market Making Tool, Introducing New Liquidity Yield Method

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