AMM stands for Automated Market Maker. This is one core technology for running DEX.
AMM automatically determines the price through a mathematical algorithm for users who want to trade (buy/sell) crypto coin. Therefore, unlike CEX, it is swapped directly to the automatically determined price without an order book.
The tokens needed to swap are taken from the smart contract. Tokens deposited in smart contracts are assets deposited in pools by liquidity providers. We call this the liquidity pool.
Liquidity mining provided by Gate.io Exchange is a service that provides liquidity and mines fees. Part of the fee generated by the liquidity pool is a PoS(Proof of Stake) mining method that is distributed to liquidity providers.
Just like depositing cash in a bank to earn interest, cryptocurrencies can also earn fees through staking.
Editor YB's comment
In the case of virtual assets for long-term investment, I do Yield Farming through staking. Liquid mining on Gate.io allows you to earn interest up to APR 106% (as of the date of writing). Check your wallet to make sure you don't have any coins that aren't working!
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