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Related papers: Automated Market Makers for Cross-chain DeFi and S…

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Decentralized exchange platforms such as Uniswap and Balancer operate on several pools where each pool contains two or more cryptocurrencies and constitutes direct trading pairs. The drawbacks here are that liquidity providing requires…

Information Theory · Computer Science 2025-07-31 Wittawat Kositwattanarerk

Constant-product market making functions were first introduced by Hayden Adams in 2017 to create Uniswap, a decentralised exchange on Ethereum. This enables users to exchange assets at any given rate. Some variations such as Balancer and…

Computer Science and Game Theory · Computer Science 2023-01-23 Théodore Conrad , Arthur Vinciguerra , Guillaume Méroué

Automated market makers are a popular mechanism used on decentralized exchange, through which users trade assets with each other directly and automatically through a liquidity pool and a fixed pricing function. The liquidity provider…

Mathematical Finance · Quantitative Finance 2024-11-27 Xue Dong He , Chen Yang , Yutian Zhou

Uniswap is a decentralized exchange (DEX) and was first launched on November 2, 2018 on the Ethereum mainnet [1] and is part of an Ecosystem of products in Decentralized Finance (DeFi). It replaces a traditional order book type of trading…

Trading and Market Microstructure · Quantitative Finance 2021-06-29 Andreas A. Aigner , Gurvinder Dhaliwal

One of the exciting recent developments in decentralized finance (DeFi) has been the development of decentralized cryptocurrency exchanges that can autonomously handle conversion between different cryptocurrencies. Decentralized exchange…

Trading and Market Microstructure · Quantitative Finance 2021-01-11 Bhaskar Krishnamachari , Qi Feng , Eugenio Grippo

Uniswap is a Constant Product Market Maker built around liquidity pools, where pairs of tokens are exchanged subject to a fee that is proportional to the size of transactions. At the time of writing, there exist more than 6,000 pools…

Trading and Market Microstructure · Quantitative Finance 2023-02-01 Deborah Miori , Mihai Cucuringu

Automated market makers (AMMs) have emerged as the dominant market mechanism for trading on decentralized exchanges implemented on blockchains. This paper presents a single mechanism that targets two important unsolved problems for AMMs:…

Trading and Market Microstructure · Quantitative Finance 2025-02-13 Austin Adams , Ciamac C. Moallemi , Sara Reynolds , Dan Robinson

Automated Market Makers (AMMs) are a cornerstone of decentralized finance. They are smart contracts (stateful programs) running on blockchains. They enable virtual token exchange: traders swap tokens with the AMM for a fee, while liquidity…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-09-03 Hongyin Chen , Amit Vaisman , Ittay Eyal

The Uniswap is a Decentralized Exchange (DEX) protocol that facilitates automatic token exchange without the need for traditional order books. Every pair of tokens forms a liquidity pool on Uniswap, and each token can be paired with any…

Computational Engineering, Finance, and Science · Computer Science 2025-03-12 Tao Yan , Claudio J. Tessone

Decentralized Exchanges (DEXs) are new types of marketplaces leveraging Blockchain technology. They allow users to trade assets with Automatic Market Makers (AMM), using funds provided by liquidity providers, removing the need for order…

Computer Science and Game Theory · Computer Science 2023-02-08 Yogev Bar-On , Yishay Mansour

Automated Market Makers (AMMs) are decentralized exchange protocols that provide continuous access to token liquidity without the need for order books or traditional market makers. However, this innovation has failed to scale when it comes…

Computational Engineering, Finance, and Science · Computer Science 2025-06-02 Sumit Vohra

Blockchain technology has revolutionized financial markets by enabling decentralized exchanges (DEXs) that operate without intermediaries. Uniswap V2, a leading DEX, facilitates the rapid creation and trading of new tokens, which offer high…

Computational Finance · Quantitative Finance 2026-02-18 Manuel Naviglio , Francesco Tarantelli , Fabrizio Lillo

Decentralized Exchanges (DEXs) are one of the most important infrastructures in the world of Decentralized Finance (DeFi) and are generally considered more reliable than centralized exchanges (CEXs). However, some well-known decentralized…

Cryptography and Security · Computer Science 2023-09-26 Rundong Gan , Le Wang , Xiaodong Lin

Decentralized Finance (DeFi) is a rapidly evolving segment of blockchain technology that enables a transformative approach to financial services through Web3 applications. By leveraging smart contracts, DeFi allows developers to build…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-05-01 Ignat Melnikov , Roman Vlasov , Vladimir Gorgadze , Andrey Seoev , Yury Yanovich

Decentralized Exchanges (DEXs) are pivotal applications in the Decentralized Finance (DeFi) landscape, aiming to facilitate trustless cryptocurrency trading by relying on smart contracts and blockchain networks. The developments in the DEXs…

Computational Engineering, Finance, and Science · Computer Science 2024-11-05 Mohammad Ali Asef , Seyed Mojtaba Hosseini Bamakan

Atomic swaps have been widely considered to be an ideal solution for cross-chain cryptocurrency transactions due to their trustless and decentralized nature. However, their adoption in practice has been strictly limited compared to…

Cryptography and Security · Computer Science 2025-03-18 Ethan Francolla , Arnav Shah

Decentralized exchanges (DEXes) have introduced an innovative trading mechanism, where it is not necessary to match buy-orders and sell-orders to execute a trade. DEXes execute each trade individually, and the exchange rate is automatically…

Computational Finance · Quantitative Finance 2021-10-12 Lioba Heimbach , Ye Wang , Roger Wattenhofer

The rise of Ethereum and other blockchains that support smart contracts has led to the creation of decentralized exchanges (DEXs), such as Uniswap, Balancer, Curve, mStable, and SushiSwap, which enable agents to trade cryptocurrencies…

Optimization and Control · Mathematics 2021-07-28 Guillermo Angeris , Akshay Agrawal , Alex Evans , Tarun Chitra , Stephen Boyd

This paper describe the implementation details of constant ellipse based automated market makers (CoinSwap). A CoinSwap prototype has been implemented at http://coinswapapp.io/ and the source codes are available at…

Cryptography and Security · Computer Science 2021-03-08 Yongge Wang

We examine how the introduction of concentrated liquidity has changed the liquidity provision market in automated market makers such as Uniswap. To this end, we compare average liquidity provider returns from trading fees before and after…

Trading and Market Microstructure · Quantitative Finance 2023-10-30 Robin Fritsch
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