USING COVALENT APIs IN BUILDING AUTOMATED MARKET MAKERS, NO CODE REQUIRED

INTRODUCTION

An application programming interface (API) is a system of linkage between computers or computer programs. It is a type of software interface, offering a service to other pieces of software. A document or guide that clearly outlines how to build such a connection or interface is called an API specification. A computer system that meets this standard is said to implement or expose an API. The term API may refer either to the specification or to the implementation. While a user interface connects a computer to a person, an application programming interface connects computers or pieces of software to each other. Essentially, one can call API the user interface for computers.

ABOUT AUTOMATED MARKET MAKERS

Decentralizing market making has always been intrinsic to the vision of crypto. An automated market maker (AMM) is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to fix the price of assets. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm. Essentially, the market forces of demand and supply technically don’t work here. There is already an established algorithm that fixes the price of assets.

ABOUT COVALENT APIs

Covalent’s vision is to empower the pioneers of tomorrow by providing the richest and most robust data infrastructure for the entire blockchain ecosystem. Covalent does so through a single, unified API.

CONCLUSION

The Application Programming Interface of Covalent has very unique features especially when it comes to Building Automated Market Makers. Of essence, is the fact that with the covalent API, no coding experience is required, thus making it quite easy for anyone to get into the space of building the AMMs.

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