Automatic Market Maker
A type of DeFi Exchange, or DEX, that allows the exchange of tokens at a price determined automatically by an algorithm.
It requires people to stake coins in the exchange for which they will receive a fee when transactions occur, in proportion to the amount of coins they have lent to the AMM exchange.
There are various algorithms that can be used by the AMM to determine exchange prices, fees etc.
This is in contrast to traditional exchanges which are based on matching buyers to sellers through a closed order book.