We present an automated market-making (AMM) cross-settlement mechanism for digital assets on interoperable blockchains, focusing on central bank digital currencies (CBDCs) and stable coins. We develop an innovative approach for generating fair exchange rates for on-chain assets consistent with traditional off-chain markets. We illustrate the efficacy of our approach on realized FX rates for G-10 currencies.
@article{arxiv.2109.12196,
title = {Automated Market-Making for Fiat Currencies},
author = {Alex Lipton and Artur Sepp},
journal= {arXiv preprint arXiv:2109.12196},
year = {2021}
}