Automated Market Makers (AMMs) are decentralized trading protocols that allow users to buy and sell cryptocurrencies without the need for traditional order books. Instead of matching buyers and sellers, AMMs use algorithms to set prices based on the supply and demand of assets in liquidity pools. These pools are funded by users who provide their tokens in exchange for a share of the trading fees. AMMs operate on blockchain networks, such as Ethereum, and are a key component of decentralized finance (DeFi). They enable users to trade assets directly from their wallets, promoting greater accessibility and reducing reliance on centralized exchanges.