Rule-based systems are a crucial component of AMMs' surveillance toolkit, by establishing predefined rules, AMMs can:

1. Define market abuse scenarios: Identify specific patterns or behaviors that indicate potential manipulation or suspicious activity.

2. Set thresholds and limits: Establish boundaries for trading activity, such as volume or price limits, to detect abnormal behavior.

3. Monitor for anomalies: Flag trades or orders that deviate significantly from expected market behavior.

4. Identify suspicious trading patterns: Recognize repetitive or irregular trading patterns that may indicate manipulation.

5. Detect wash trading and spoofing: Identify trades that involve no actual change in ownership or attempts to manipulate prices.

6. Flag unusual order book activity: Detect sudden or excessive changes in the order book that may indicate manipulation.

7. Enforce trading halts: Suspend trading when predefined rules are triggered, preventing further potential manipulation.

8. Alert regulators and authorities: Notify relevant parties when rules are triggered, facilitating further investigation and action.

By implementing rule-based systems, AMMs can:

1. Automate surveillance

2. Enhance market integrity

3. Reduce manual oversight

4. Improve response times

5. Increase transparency

These rules serve as a first line of defense against market manipulation, allowing AMMs to maintain a fair and efficient trading environment.