PandaFantasy
  • Introduction
  • How It Works
    • Buying and Selling Keys
      • How to Purchase Keys
      • The Role of the Automated Market Maker (AMM)
      • Key Price Dynamics and Supply Changes
      • Smart Contract Functionality for Instant Sales
    • Bonus Pools
      • Rewards Pool Allocation
      • Virtual Dividend bonus
      • Pick 5 Bonus Pool
  • PANDA & USDp
    • PANDA
    • USDp (PandaSea Dollar)
      • Overcollateralization & Backing
      • Minting and Burning Mechanics
      • Not a traditional Stablecoin
    • Benefits to PandaFantasy & PandaSea
    • Getting Started with PANDA & USDp
    • Token FAQ
  • FAQ
    • Is this betting?
    • Are Panda Fantasy Keys securities?
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  1. How It Works
  2. Buying and Selling Keys

The Role of the Automated Market Maker (AMM)

The Automated Market Maker (AMM) is a crucial component of Panda Fantasy. It is an algorithmic mechanism that automatically adjusts the price of keys based on supply and demand. The AMM ensures continuous liquidity, meaning you can always buy or sell keys without waiting for a counterparty. 70% of the funds from each key purchase goes into the AMM liquidity pool. Keys are issued when bought, and destroyed when sold, keeping supply in line with demand. The workings of the AMM are available to view on the blockchain to anyone who wishes to see the code that operates there on the smart contracts.

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Last updated 2 months ago