Innovative Approach: Unveiling the Basics of Utilizing a Cardano DEX

Uniswap, a prominent platform built on Ethereum, introduced the Automated Market Maker (AMM) model, which has gained immense popularity. In this model, users contribute liquidity by pairing tokens together in pools. The exchange rate of these tokens is determined by the proportion of tokens in each pool. When users swap assets, they add one token to the pool while receiving the other token in return. Throughout this process, a small fee is paid to the liquidity providers.