Virtual Automated Market Makers (vAMMs)
A technology known as a virtual Automated Market Maker (vAMM) enables traders to purchase and sell derivatives wholly on the blockchain by providing synthetic (or virtual) liquidity.
The idea of the automated market maker is the foundation for virtually automated market makers, or vAMMs (AMM). With the help of liquidity from liquidity providers, traders can perform token swaps on AMM’s automated smart contract platform. The virtual Automated Market Maker (vAMM), a new sort of AMM that expands its use beyond token swaps to derivatives like perpetual contracts, is built upon this foundation.