Automated Market Makers (AMMs) can lower settlement costs by:

1. _Automating Settlement Processes_: AMMs eliminate manual processing, reducing labor costs and minimizing errors.

2. _Faster Settlement Times_: AMMs enable real-time or near-real-time settlement, reducing the need for prolonged settlement periods.

3. _Reduced Intermediary Fees_: AMMs can bypass traditional intermediaries, lowering associated fees and charges.

4. _Increased Efficiency_: AMMs optimize settlement processes, reducing overhead costs and improving overall efficiency.

5. _Simplified Reconciliation_: AMMs provide clear and transparent transaction records, streamlining reconciliation processes.

6. _Lower Custodial Fees_: AMMs can reduce the need for custodial services, resulting in lower associated fees.

7. _Improved Counterparty Risk Management_: AMMs can minimize counterparty risk, reducing the need for costly risk management measures.

By streamlining settlement processes, AMMs can significantly reduce associated costs, making markets more efficient and cost-effective for traders and investors.