AMM pool contains governance tokens of top Solana AMMs, such as Raydium or Orca. This pool lets you conduct pair trades, where you long A and short B to produce a market-neutral position that benefits from the overperformance of a protocol over another. AMM tokens are slightly more liquid than other governance tokens and have higher LTVs as such.
The price of these AMM tokens are predominately detected using Pyth, and Switchboard as a backup. For tokens without Pyth feeds, they rely on Switchboard ones.
Switchboard currently employs an equal weighting mechanism, where the average of various prices is taken. In times of market congestion, we will bump the OracleBatchSize to 5 to improve oracle reliability.