# What Is an AMM Protocol In an Automated Market Maker (AMM) Protocol, there are no middle man or order books like a traditional centralized exchange. Trading is done via the Smart Contracts which leverage liquidity or assets provided by users who opt to become Liquidity Providers. We have optimized our Token Economics to offer incentives for all participants of Ferro, so that Ferro can be an autonomous finance ecosystem that thrives in the long run. Ferro will enjoy a stronger network effect that drives up the value for everyone as we aggregate more users and supporters. So if you like what we offer, make sure you share it with your friends and invite them to be part of our community! Thank you for your support! --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.ferroprotocol.com/fundamentals/what-is-an-amm-protocol.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.