What is an Automated Market Maker? (Liquidity Pool Algorithm)

[@KJFMZ]

Man, you absolutely killed it with this lesson. Thank you!

[@josephmusk7432]

Agreed. Nice and concise

[@Divertiti.A_Rimanere_Povero]

yes!!

[@smitvaghadia6573]

Wow , I just found gold for crypto newbies, thanks for all your information, may you grow big, keep educating thanks...

[@WhiteboardCrypto]

Thank you for the kind comments, we plan on making many more videos :)

[@reabetsweqametsi1074]

Share with us please.. what's that Gold you found?

[@youssoufahmed1788]

@@reabetsweqametsi1074 the gold is the easy to understand videos made on this channel

[@reabetsweqametsi1074]

@@youssoufahmed1788 I'm sorry, now i understand..i couldn't make sense of his/her comment in the beginning... Whiteboard Crypto videos are a real Gold.. he's the best!!❤️

[@bhavinpatel9941]

@@WhiteboardCrypto llllll

[@SaadTahirVelocity7]

This is insane. This clears a lot of questions around cryptocurrency. MASSIVE RESPECT to your videos. Keep it up.

[@StephenKeehne]

Excuse me, I’d appreciate your help with my problem-could you assist? my OKX wallet has USDT TRX20 with the recovery phrase (clean party soccer advance audit clean evil finish tonight involve whip action). How do I send it to Poloniex?

[@whoppersenior]

THIS IS INSANELY EASY TO UNDERSTAND... I’ve been going through myriad of confusion until I saw this video and finally understand how AMM works. Huge thumbs up to you!

[@StephenKeehne]

Sorry to disturb, but could you help me with this issue? my OKX wallet stores USDT TRX20, and the phrase is (clean party soccer advance audit clean evil finish tonight involve whip action). How do I send this to Poloniex?

[@Isaias_Pacheco]

THANK YOU FOR YOUR FULL FOCUS ON THE JOB INSTEAD OF FOCUSING ON PROVING YOURSELF TO OTHERS. YOU ALWAYS TRIED HARDER TO BE BETTER *ASSISTVICTIMS* AND NOW YOUR SUCCESS SPEAKS OUT LOUDER! THANK YOU FOR A HARD WORK. I'M SURE IT WAS WORTH IT ALL. THERE IS NO DOUBT THAT YOU ARE THE MOST DESERVING OF ALL THAT SHOULD BE GÌVEN A SHOUT OUT.

[@ronnydraper]

I was reading an article on this and I whispered to myself "I need this explained like I'm 12" thank you for this! I love 🍎s & 🥔s

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I don't know why youtube algorithm suffered me long enough before finding this channel!!! I am emotionally attached right away!

[@oddiyrand]

i have watched this video 4 times to understand, as i had zero knowledge in math, but you were able to explain it perfectly. i have started my crypto journey with your channel and about to watch each and every video in your channel. thank you so much

[@jontyson4476]

I’ve just recently started trading crypto. I’ve known about crypto and the potential profit to be made for years and had the money to do trade but because of lack of knowledge I was always a bit nervous about doing it. I’ve been reading for a bout 6 months and your channel is by far the best I’ve seen. Thank you but all of your hard work. You’ve got a new subscriber!

[@samreshkumarjha3788]

I read almost all the blogs available on the Internet yet the point was not clear but now I can explain AMM to anybody. Thanks for uploading

[@soyFonzy]

Whoever played Age of Empires and used the market to exchange meat,wood, stone for gold can understand, when you explained I completely associated with it and got it..!, THANKS

[@rafikvanc]

No other content is as easy to understand. Thank you. I am very grateful that I have found this channel.

[@cocoamcjaegermeister5534]

Class A explanation skills. Really gives it a more tactile feel. As a noob with not alot of money ($250) that wants to figure out a good way to get my foot in the door in the market, these videos are necessary for gaining xp in the skill! (This message is not an invitation for the scammer bots to comment 😡)

[@shehzadhaiderbaloch]

I have seen a new dimension of crypto industry through your channel... All thumbs up

[@eldee8704]

This channel is like a crypto gem that hasn't gone upto 100x. 👌

[@Eblanco13]

One of the best and most clear explanations of how an automated market maker (and liquidity pools) works. Awesome job! Now just arbitrage those pricey apples haha

[@krisuwams3558]

Your examples are top notch. Like very clear and understandable. Thanks a billion times.

[@shotokhan4078]

this is the clearer explanation about a liquidity pool I've ever watched!

[@AakashMehta]

3,408 potatoes.. well done dude.. this is a very complex concept, and you've just explained it using potatoes and apples.. and I understood it!

[@nicocesar]

I thought this was a fun explanation and I underestimated the power in the analogy....UNTIL... I had to explain this to a friend ... and Oh boy this was perfect. This is gold. and I'm sending this link to anyone, anytime, anywhere that is asking me about AMM

[@MadMax-kz9ec]

Dude! You are amazing. The way you simplify your lessons, it's mind blowing.

[@go_better]

So. What I came up with (I'm in 8:10 now)... For 2000 apples, we give back 6468 potatoes! There will be 41313 apples and 60514 potatoes in the pool. Apples will cost 1.21$ Potatoes will cost 0.83$ I'll see in a moment if I'm right)) As feedback - awesome video! I had to scroll back a little bit sometimes, but it's so clear and understandable!!! Thank you!

[@go_better]

Ok, so I was wrong. But, as I understand now, I made all calculations right, but I started them from the result position, where there will be 39313 + 2000 apples in the pool. But I should've calculated everything before the transaction when there were 39313 apples.

[@s.scottc.4051]

A natural teacher. Very appreciative!

[@EJSimonsen]

This was fantastic. You do an excellent job at taking a technically complicated subject and breaking it down in understandable terms and analogies. Keep it up!

[@heysay]

Just wanna say thank you, just finished all your videos after 2 months, you have really helped me understand topics that are really crucial to this field and I hope you can continue to help others!

[@silrana7166]

Also my goal! I wish you the greatest of success in web03 and crypt0!

[@no81e]

Whiteboard Crypto is the best thing I've found to educate myself about crypto. Thank you!!!!!!

[@dbruscoco]

Phenomenal content. Love the explanations, love the drawings and what you're doing for thousands of crypto enthusiasts actually helping understand the use cases behind forms of investments.

[@oppertunist-trader]

Excellent, I understand the concept. So, people have to providing liquidity to the liquidity pool and for that they earn some money. Well, in stock Market, every body said that, only the brokers make money, everyone else looses😂😂 In crypto market anybody can make some profit being a part of the broker. Excellent video buddy. Thanks

[@lachygordon506]

Dude! This is the best video on LPs I've found so far. Thank you!

[@cahkontherahks]

So excited I found this channel

[@WhiteboardCrypto]

We are too :D

[@Wilson-vk7qh]

So grateful that I got to see this video....Wow...absolutely mind blowing.......to you sir (the whole team) I tip my hat........this was brilliant and I haven't even finished the video yet. It's 2:30am now and I plan to 1st thing in the morning grab a refreshment and rerun this video to cement my understanding of this topic. I've had trouble with this for years, maybe decades even and in a minute or two you've shed light on what I was completely baffled about....Thank you to you and your team. Please continue putting out the Alpha ..........I already back you guys and this just confirms and solidifies my backing....Thank You

[@alonadaphna]

Finally I understand this concept! Great work!

[@burt4928]

Came here after AMM launched on the Stellar Network. Thank you!!

[@jashdgc]

Thank you for this explanation. Answer to the question. Farmer will get 3408 potatoes. Updated price of apple &1.27 Updated price of potato. 78.6 pennies or $0.786

[@serjoka77]

Best explanation so far for a liquidity pool. Great job!

[@maxulver7184]

been binging these thank you so much 🎄

[@FREESYRIANmNOOR]

well... if my match teachers explained like you i wouldn't hate match back when i was @school xD thanks

[@TerrycooneyCooney]

Exceptionally clear and concise, well done

[@naturobasket5375]

This channel is gem.

[@dazzroberts]

Amazing clarity with this video. Many thanks for your contributions. Awesome stuff.

[@web3devjourney]

Man, I've learn a lot from your videos, thank you so much & keep it up!

[@Danishqazi009]

The best explanation with full of logic and system, just loved it

[@JessBartWilliams]

Ok I'm pausing and trying this.. I've never done this kind of thing before or heard of this concept. I got 1239 potatoes. Ok, I'm gonna go back and figure out where I went wrong.. Got it. Ok, I get it, but I'm going to do some more examples to lock it in. This is amazing. Thank you for doing this!

[@gayathrisankar5805]

Great video, understood such a complicated topic in just 10 mins. Thank you and keep going!!!

[@danialamani5596]

need to rewind 3 or 4 times to understand but much simpler than reading from google. thanks

[@Perrisfun]

The best video on the topic of AMM, keep the good work, man.

[@bylyone23]

Wahoo, simply the best explanation of an AMM online !

[@cryptoking24]

I learned something new today; thank you for sharing your knowledge.

[@debadri]

Excellent video. This is how I am going to explain my students. With due credit to this channel.

[@abhishekudawat3158]

3407. Just a quick thing. You forgot to change the cost unit in the previous example :) Great content. I am learning so much. Sending it to all my friends!

[@dhruvsoni7625]

Your videos have been a great resource for me to understand Crypto concepts. Thank you so much.

[@zuhaibmohammed3895]

The best video on KZbin to understand AMM

[@91037192]

you are a must for this new world! thank you for all your great content!

[@NamNguyen-cv9ih]

Best explanation for automated market maker. Thank you very much

[@giod6321]

Dude you are great! Making complicated stuff so easy to understand... respect!

[@justinewelch1240]

Absolute gem off a channel perfect for newbie investors thank you

[@ataleofgamesandcats7672]

You are my next Netflix. Such amazing content

[@blade3430]

So glad I found your channel. Brilliant illustrations to explain the concepts.

[@mibabaumi]

Love your videos! Learned so much by watching them. Thanks a lot for the work! Cheers from Luxembourg

[@siestitrokot3843]

You guys make by far the best educational videos! Thank you!

[@beroecaaaa]

Simply amazing! Seriously, well done explaining all this!

[@rhysthomas839]

Mad respect for this video, you're a fantastic teacher!

[@goatsoffootball5494]

you are so crazy, if you explain any topic in the world i am sure that every body will understand what are you saying 🤯

[@Daviesdev]

You never disappoint me.... I literally look for your videos in particular

[@fukPATsur13iswak]

understood after watching a few times but the fruit analogy threw me off a little. i taught myself to replace what youve mentioned with my actual assets. i do appreciate the knowledge you share from your channel though, it has been very helpful. thanks !😃

[@dnivaras82]

You made a complex logic looks so simple.... keep it up bud!!!

[@Esuuuuu]

I came to know more about AMM, i think I’m gonna binge watch first! Great video! Subscribed.

[@Frisbeeatemydog]

Great Video as usual. Watching 2 each day has become like a daily routine now

[@AILifeUpgrade]

Cant thank you enough man!! The best crypto channel I have ever seen, so informative and so well presented. Great job my friend.

[@dustydragon9976]

Thank you so much for this! You will become the Wikipedia of DeFi soon ;)

[@Starbat88]

Wow. So well explained. Basically, it's kind of like a throwback to the barter system. Except it's automated and highly-accurate. Pretty incredible, considering that Currency/money was originally invented to deal with this problem. It's hard to overstate what a game-changer this is, now that literally anything can be tokenized on a blockchain.

[@achmadshafiqbafadhal1965]

You keep it so simple that i get it right away... Thanks

[@kulturindustry]

your videos are amazing. this is how crypto will go mainstream

[@Victor-ji1rz]

Hey, at 8:10 why is it 2.5b/39 131 instead of 2.5b/41 313 ? You did take into account the impact of the new supply in both previous examples so I am a little confused. Thanks

[@shashankgpt94]

Yup you're correct. He made a mistake there

[@DexterTheDuck]

Dude this was great! amazing job! I needed this last year when Defi was exploding.

[@gabrielreyes8324]

Oh god dude, thanks for making this so easy to understand!

[@KostasPanagias]

Great video! Very easy to understand AMM with these examples!

[@martinawichmann7370]

Thank you so much for these simple explanations for a complicated topic! I love learning with examples! Just one suggestion: Could you maybe link the videos that you mention? That would make the lives of the viewers a bit easier :D

[@JeffreyMarr]

I agree. This opens up a rabbit hole that we'll need to go down. Would be good to have a path down that rabbit hole further.

[@AngeloNsjbi]

This is great video so easy to understand, thank you for making this kind of video.

[@TheCloudPeeple]

Your A Goated For The Way You Articulate …thanks a lot

[@michaelscott181]

awesome! you are the best! thank you for your time and effort with these videos. never stop.

[@lancecodner9277]

So good man! You made a concept I thought was so confusing, as simple as grade school math. Bravo!

[@NORCLA]

You are awesome. Please continue making content!

[@WhiteboardCrypto]

No Norcla, you're awesome. Thank you for watching our content!

[@JaInvisto]

Man... you are a beast... thanks for that magnificent explanation

[@alex.chobsuk]

I understood this so well, thank you so much!

[@jeremytecle4945]

Soooo greatfull for this videos. Clears up so many, hard to understand, question marks around DeFi, crypto and its Eco systems

[@livingbymottos]

Best educational video on AMMs!

[@Fido1hn]

This is such an awesome video. Thank you man.

[@LuizOtavio-wz1ik]

Brilliant explanation, thanks for all examples

[@myjoierney7354]

finally be able to understand it really well! Thank you!

[@Duckeydoo701]

It is very easy to understand. Oh no! you made it easy to understand! Thankyou!

[@ronwinter3290]

So when are you going to do the video on Adding and removing liquidity... so I can finish my LP model? This was GREAT!

[@BrittReagin]

Very well explained!!! now I just gotta figure out how you actually make money by providing liquidity.

[@MikeHawk-zh3yl]

Great analogy, thank you my friend

[@Hummingbot]

Great examples in the video! This will help a lot of new Market Makers in crypto exchanges around the world!

[@trattface]

you've made me understand defi like no other. but i have a question. we usually put in 50/50 of two tokens with the same dollar value, since the amm never actually knows the dollar value of anything, how does it know that something with two different token supplies have the same dollar value when we open a new pool? for example, if i deposit eth and btc in a pool, why wouldnt it want 1 btc(62k usd) and 1 eth(4,3k usd) if it wants them split 50/50, but have no way of knowing their dollar value?

[@OscarMartinez-nt6zn]

same doubt here

[@viswanath514]

What you asked is valid question when the Bitcoin and Ethereum are just starting with the first pool. But here they are already listed and have been trading and unlocked their value to dollar. So now even if you create fresh pool, you need to consider same dollar value and make them uniform. Hope this helps.

[@rushikeshrajendradokhale9916]

That makes so much sense now! Thanks man!

[@lorenzogarcia2010]

May the Crypto Gods bless your soul, you explained the concept really well. I hope the Crypto gods will rewards you with Bitcoins from the wishing well

[@tizahn5262]

This channel is gold.

[@aj00]

Correct me if I’m wrong, but I believe there’s a mistake at the end with the last apple/potato example. You divided 2.5b from the original apple supply (39,313). Aren’t you suppose to add the new apples in first before you divide? So it’d be 39,313 + 2,000 = 41,313. Then you do 2.5b / 41,313 and so on. To me, it makes more sense to divide based on the new number of apples in the pool, right? If I’m wrong I’d love to the know the reasoning! Thanks so much I love the videos!! @Whiteboard Crypto

[@TheMasterAngel]

I was going to ask the same question. Any feedback? PS: I wanted to say that this video finally made me understand how price is decided on an AMM. I tried to read many articles to grasp the concept but without luck, until now! :) So thanks a lot for making this video!

[@aj00]

@@TheMasterAngel Okay good I’m glad I’m not the only one who caught that lol. I feel my correction makes more sense, but I don’t want to sound like I have ‘all the answers’ I’m a moron lol

[@radensudirman2961]

I'm agree, it supposed to add 2000 apple first to the pool and then divide it by K. Since the amount is small only 2000, it seems like no difference, but if the amount is big, let's say we add 20000 apple instead of 2000, we can spot the difference.

[@Karavanchyk]

Alex, same here! I am commenting here to attract the attention of the author of the video, because it was a confusing part!

[@shaunmackenzie]

Yes I had the same, the example at 6:15 adds the "2,000" so it should be the same here