Automated Market Makers (AMMs) can lower trading costs in several ways:

1. _Reduced bid-ask spreads_: AMMs can narrow bid-ask spreads, reducing the cost of trading.

2. _Lower transaction fees_: AMMs can charge lower transaction fees compared to traditional market makers.

3. _Increased liquidity_: AMMs can provide liquidity, reducing the costs associated with searching for counterparties.

4. _Improved price discovery_: AMMs can facilitate better price discovery, reducing the costs of information gathering.

5. _Reduced market impact_: AMMs can reduce market impact, minimizing the costs of trading large orders.

6. _Lower settlement costs_: AMMs can streamline settlement processes, reducing associated costs.

7. _Increased competition_: AMMs can increase competition among market makers, driving down costs.

By reducing trading costs, AMMs can make markets more accessible, increase trading volumes, and improve overall market efficiency, benefiting traders, investors, and the broader financial community.