CoinEx Automated Market Making

AMM refers to Automated Market Making.

By adding funds (providing liquidity), you start earning rewards, which are automatically credited to your AMM account. The process involves no fees.

Impermanent Loss is a temporary reduction in asset value experienced by Liquidity Providers (LPs) in Automated Market Maker (AMM) pools due to price fluctuations. Under the Constant Product Market Maker model, if an LP withdraws liquidity while asset prices have diverged, the value of their withdrawn assets may be lower than if they had simply held the tokens. This difference is called impermanent loss. Importantly, this loss is only realized upon withdrawal — if the asset price ratio returns to its original level, the loss disappears.