Automated Market Makers in Cryptoeconomic Systems: A Taxonomy and Archetypes
Trading and Market Microstructure
2025-03-24 v3 Cryptography and Security
Abstract
Designing automated market makers (AMMs) is crucial for decentralized token exchanges in cryptoeconomic systems. At the intersection of software engineering and economics, AMM design is complex and, if done incorrectly, can lead to financial risks and inefficiencies. We developed an AMM taxonomy for systematically comparing AMM designs and propose three AMM archetypes that meet key requirements for token issuance and exchange. This work bridges software engineering and economic perspectives, providing insights to help developers design AMMs tailored to diverse use cases and foster sustainable cryptoeconomic systems.
Keywords
Cite
@article{arxiv.2309.12818,
title = {Automated Market Makers in Cryptoeconomic Systems: A Taxonomy and Archetypes},
author = {Daniel Kirste and Niclas Kannengießer and Ricky Lamberty and Ali Sunyaev},
journal= {arXiv preprint arXiv:2309.12818},
year = {2025}
}