A Single Contract AMM, or Automated Market Maker, is a decentralized exchange protocol where all liquidity pools and trading logic are contained within a single smart contract. This architecture can simplify deployment and potentially reduce gas costs for certain operations. It streamlines the management of various token pairs under one unified system. This design approach aims for efficiency and consolidation within decentralized trading environments.
Context
The design choices for AMMs, including the use of single versus multiple contracts, are a frequent topic in decentralized finance development. News often compares the efficiency, security, and flexibility of different AMM architectures. The operational benefits and potential risks of single contract AMMs are continually assessed as the DeFi landscape matures.
The single-contract AMM architecture on zkSync fundamentally improves capital efficiency and abstracts away complex gas costs for L2 liquidity providers.
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