How does XRP AMM work?

XRP AMM, or Automated market Maker, is a decentralized exchange mechanism on the XRP Ledger. It allows anyone to provide liquidity for asset pairs, earning a proportion of trading fees and sharing exchange risks. AMMs on XRPL use algorithms to determine asset prices based on supply and demand, ensuring constant liquidity. Liquidity providers receive LP tokens representing their share of the pool, which can be used for voting on transaction fees or redeemed for assets.