In the digital asset trading market, liquidity determines the experience of each trade—whether transactions are smooth, whether slippage is controllable, and whether prices are stable all rely on the support of market depth. For a long time, liquidity in exchanges has mainly been provided by professional market-making institutions, which maintain the balance of buy and sell orders by continuously placing orders, while ordinary users are more often participants in trading and rarely have the opportunity to genuinely engage in building liquidity.
With the maturity of Automated Market Making (AMM) mechanisms, a more open model has begun to emerge in the market: not relying on manual monitoring, and not requiring complex strategies, users only need to provide assets, and the system can automatically complete the market-making process and share trading fee earnings. Based on this idea, BitMart launched the AMM Automated Market Making Tool (AMMbot), hoping to transform "market making" from a capability exclusive to professional institutions into a method that ordinary users can easily participate in, allowing liquidity building itself to become a part that users can engage in and share profits from.
What exactly does AMM do? In a nutshell
To summarize in one sentence: You provide funds, the system automatically places orders for you, the market generates trades, and you earn a share of the fees.
In the traditional order book model, market making means constantly manual placing of buy and sell orders and frequently adjusting prices based on market fluctuations, which requires a high level of experience and effort. In contrast, the logic of AMM is much simpler—users deposit two types of assets (for example, BTC and USDT) into a liquidity pool simultaneously, and the system automatically generates multiple buy and sell orders within various price ranges based on algorithms, continuously adjusting the asset ratios within the pool based on market trading situations.
The entire process does not require frequent operations, nor does it need manual monitoring; the system will continuously provide two-way depth in the market, ensuring that the trading pair remains in a tradable state.
In terms of pricing logic, AMM adopts a constant product mechanism to maintain the proportional balance of the two assets in the pool through mathematical relationships. For example: if there is BTC and USDT in the fund pool, when someone buys BTC, the BTC in the pool will decrease while the USDT will increase. Since the product of both must remain constant, the price of BTC will naturally rise, and vice versa. Prices are not artificially set but rather naturally formed by the ratio of assets in the pool. This mechanism allows the market to maintain continuity and stability in different trading directions.
Optimized design of AMMbot at the product level
While introducing the AMM mechanism, BitMart has tailored the product experience to better align with usage habits in centralized trading environments.
1. Automated order placement, continuously providing depth
The system will automatically set buy and sell orders at different price ranges to maintain market liquidity.
2. Post-Only protection mechanism
All AMM orders are "post-only" and will not actively take orders, avoiding additional trading costs.
3. Automatic accumulation of earnings
The trading fees generated will be automatically included in the fund pool in real-time, with no manual claim needed.
4. Free deposits and withdrawals, no extra fees
Users can add or withdraw liquidity at any time, with no limits on the number of liquidity additions per market daily.
From a practical experience perspective, AMMbot resembles an automatically running market-making engine. Users do not need to pay attention to the details of order placement; they only need to decide based on their strategy whether to participate and how much to invest, while the system continues to 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 AMM function is open, select the corresponding market, and click "Add Liquidity," then follow the system prompts to invest two types of assets to complete the addition. The system will automatically calculate the required amounts based on the current funding pool ratios, and after confirmation, the funds will enter the liquidity pool, with the system automatically executing the order placement and asset allocation logic.
Currently, AMMbot has been launched on some spot trading pairs, including BMX/USDT, ZAMA/USDT, PEPE/USDT, SHIB/USDT, ICP/USDT, DOGE/USDT, LUNC/USDT, YEC/USDT, etc., with the specific support range as displayed on the page.
When the market is trading, you are also participating
In the past, many people tended to place themselves in the position of "trader"—buying, selling, waiting for price changes. But in fact, behind every smooth transaction that occurs, there needs to be a constant presence of buy and sell support.
What AMMbot does is simple: when the market is trading, the portion of funds you provide is also in motion within it.
It does not require direction judgment like short-term trading, nor does it depend on frequent operations. More often, it is a way of "participating alongside the market"—the market is active, liquidity is moving; liquidity is moving, and profits naturally arise.
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 the market.
About BitMart
BitMart is a leading global digital asset trading platform with over 13 million users worldwide. BitMart ranks highly on CoinGecko, offering over 1,700 trading tokens with competitive fees. BitMart adheres to the philosophy of continuous innovation and financial inclusion, committed to providing users worldwide with a seamless trading experience. To learn more about BitMart, 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 entails all risks. All cryptocurrency investments, including financial management, are highly speculative and involve significant loss risks. Past, hypothetical, or simulated performance does not necessarily represent future results.
The above information is for reference only and should not be viewed as advice to buy, sell, or hold any financial asset. All information is provided in good faith. However, we do not make any express or implied statements or guarantees regarding the accuracy, adequacy, effectiveness, reliability, availability, or completeness of such information.
All cryptocurrency investments (including financial management) are inherently highly speculative and carry significant loss risks. Past performance, hypothetical results, or simulation 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 significant risks. Before trading or holding digital currencies, you should carefully assess whether participating in such investments is suitable for you based on your investment goals, financial situation, and risk tolerance. BitMart does not provide any investment, legal, or tax advice.
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