Automated Market Makers (AMMs) are a type of decentralized exchange (DEX) protocol that allows users to trade cryptocurrencies without the need for an order book. Instead of matching buy and sell orders, AMMs use liquidity pools where users can deposit their tokens. The pricing of assets within these pools is determined by algorithms that calculate prices based on the ratio of the assets in the pool. This model facilitates continuous trading, enables users to earn yields by providing liquidity, and allows for efficient price discovery.