> For the complete documentation index, see [llms.txt](https://dev.spectra.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dev.spectra.finance/technical-reference/spectras-automated-market-makers.md).

# Spectra's Automated Market Makers

The Spectra AMMs are used to create a market for pricing the future implied rate. A market consists in a liquidity pool, where a Principal Token is paired with its corresponding Interest Bearing Token. It is therefore time-bound, trading being enabled between the Principal Token's deployment and expiry dates. 

A given liquidity pool allows for exchanging an Interest Bearing Token for a Principal Token, as well as exchanging the former for its corresponding Yield Token, via flash-swaps.

In the following, we dive into how Spectra's AMMs are designed.