> For the complete documentation index, see [llms.txt](https://teneofinance.gitbook.io/teneo-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://teneofinance.gitbook.io/teneo-finance/tenxxx-token-ecosystem/automated-market-maker.md).

# ⛓⚖️ AMM ⚖️⛓

Explains the Automated Market Maker of the tenXXX Tokens.

## ⚖️Automated Market Makers⚖️

The Automated Market Maker (AMM) makes sure that there is one place where [tenXXX ](/teneo-finance/tenxxx-token-ecosystem/tenxxx-token.md)can be swapped to [XXX ](/teneo-finance/tenxxx-token-ecosystem/underlying-token.md)back and forth to a ratio of \~1:1 at any time.

## 🌟🔥 Mint/Burn or Lock/Unlock 🔒🔓

Every time someone locks a [XXX Token](/teneo-finance/tenxxx-token-ecosystem/underlying-token.md) into the AMM there will be minted a [tenXXX ](/teneo-finance/tenxxx-token-ecosystem/tenxxx-token.md)token. \
Every time someone unlocks a [XXX ](/teneo-finance/tenxxx-token-ecosystem/underlying-token.md)they need a [tenXXX ](/teneo-finance/tenxxx-token-ecosystem/tenxxx-token.md)which is burned at this moment.\
\
There is also a fee (at the beginning minting: 1.6% burning: 0.6%) for the [DAO Wallet](/teneo-finance/tenxxx-token-ecosystem/dao-wallet.md). This fee will be taken away after minting or before burning a tenXXX token.\
\
That means **there will never be more** [**tenXXX** ](/teneo-finance/tenxxx-token-ecosystem/tenxxx-token.md)**Tokens minted than locked** [**XXX** ](/teneo-finance/tenxxx-token-ecosystem/underlying-token.md)**tokens** in the AMM.<br>