# Ordinals AMM Multibit's Ordinals Automated Market Maker (OAMM) is a decentralized exchange protocol designed specifically for trading Ordinals ($ORDI) tokens. It leverages the principles of automated market making to provide liquidity, enable seamless token swaps, and facilitate efficient price discovery for $ORDI and other paired tokens. ## **Token Swapping** Users can swap between $ORDI tokens and the paired tokens directly within the AMM. By inputting the desired amount of one token, the AMM automatically calculates and executes the trade based on the current reserve ratios. This allows for seamless and instant token swaps at a fair market price. ## **Price Discovery** Through the continuous trading activity and interaction with liquidity pools, an Ordinals AMM dynamically adjusts token prices based on the supply and demand of the traded assets. This process enables efficient price discovery, as prices are determined by the ratio of tokens within the pool. ## **Liquidity Provision** Users can become liquidity providers by depositing an equal value of $ORDI tokens and the paired token into the liquidity pool. In return, they receive liquidity provider (LP) tokens representing their share of the pool. Liquidity providers earn trading fees proportional to their share of the pool and help ensure sufficient liquidity for traders. --- # 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.multibit.exchange/multibit/multibit-ecosystem/ordinals-amm.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.