Building on your understanding of transactors (Module 03bis), ledger entries (Module 03), and the consensus mechanism (Module 08-09), you will dive into the complete AMM architecture: from pool creation to liquidity provision, trading fee governance, and auction slot mechanics.

By the end of this module, you will understand:

• How AMM pools are created and managed as pseudo-accounts
• The mathematical formulas behind swaps, deposits, and withdrawals
• How LP tokens represent ownership of pool liquidity
• The governance mechanisms for trading fees and auction slots
• How pathfinding integrates AMM offers with CLOB offers

This module covers the complete AMM implementation that brings decentralized exchange capabilities to the XRP Ledger:

• Architecture: Understand the ltAMM ledger entry, pseudo-account model, LP token design, and how pools are represented on the ledger.
• Transactions: Learn all seven AMM transaction types (Create, Deposit, Withdraw, Vote, Bid, Delete, Clawback) and their validation phases.
• VoteSlots: Explore the fee governance mechanism where LPs vote on trading fees with weight proportional to their pool ownership.
• AuctionSlot: Discover the 24-hour auction system that allows active traders to bid for discounted fees using LP tokens.
• Logic: Master the constant product formula, swap calculations, LP token minting/burning, and precision handling.
• Pathfinding: Understand how synthetic AMMOffers are dynamically generated to compete with CLOB offers for best execution.