How much capital do I need to seed the AMM, and how do I manage liquidity costs at scale?

The AMM does not require massive capital. Individual markets can be seeded with as little as $50 to $100, depending on expected trading volume and market type. For operators running hundreds of markets, the AMM engine uses a shared subsidy pool model: rather than locking capital per market, the AMM dynamically allocates liquidity across active markets based on demand. Risk controls include maximum exposure limits per market, automatic spread widening when one side becomes heavily traded, and the ability to pause or reduce AMM participation in any market. Short-duration markets (like 5-minute crypto contracts) use tighter spreads and smaller subsidy amounts, keeping capital requirements low even at high market volume.