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Automated market makers (AMMs) are automata that trade electronic assets at rates set by mathematical formulas. AMMs are usually implemented by smart contracts on blockchains. In practice, AMMs are often composed: and outputs from AMMs can…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-09-01 Daniel Engel , Maurice Herlihy

We consider the problem of optimally executing an order involving multiple crypto-assets, sometimes called tokens, on a network of multiple constant function market makers (CFMMs). When we ignore the fixed cost associated with executing an…

Optimization and Control · Mathematics 2022-04-12 Guillermo Angeris , Tarun Chitra , Alex Evans , Stephen Boyd

Automated market makers (AMMs) are a new prototype of decentralised exchanges which are revolutionising market interactions. The majority of AMMs are constant product markets (CPMs) where exchange rates are set by a trading function. This…

Trading and Market Microstructure · Quantitative Finance 2025-06-19 Álvaro Cartea , Fayçal Drissi , Marcello Monga

We study algorithms for combinatorial market design problems, where a set of heterogeneous and indivisible objects are priced and sold to potential buyers subject to equilibrium constraints. Extending the CWE notion introduced by Feldman et…

Computer Science and Game Theory · Computer Science 2014-01-20 Michal Feldman , Brendan Lucier

The Walras approach to equilibrium focuses on the existence of market prices at which the total demands for goods are matched by the total supplies. Trading activities that might identify such prices by bringing agents together as potential…

Optimization and Control · Mathematics 2023-05-30 J. Deride , A. Jofré , R. T. Rockafellar

Classical optimal auction theory assumes that bids reach the seller directly. We study how this picture changes when a revenue-maximizing intermediary controls access to the seller's auction. Motivated by blockchain auctions, online…

Computer Science and Game Theory · Computer Science 2026-05-22 Jingyi Liu , Aviad Rubinstein , Ertem Nusret Tas , S. Matthew Weinberg , Qianfan Zhang

We consider a market where a set of objects is sold to a set of buyers, each equipped with a valuation function for the objects. The goal of the auctioneer is to determine reasonable prices together with a stable allocation. One definition…

Computer Science and Game Theory · Computer Science 2024-05-22 Katharina Eickhoff , S. Thomas McCormick , Britta Peis , Niklas Rieken , Laura Vargas Koch

We envision a marketplace where diverse entities offer specialized "modules" through APIs, allowing users to compose the outputs of these modules for complex tasks within a given budget. This paper studies the market design problem in such…

Computer Science and Game Theory · Computer Science 2025-02-28 Kshipra Bhawalkar , Jeff Dean , Christopher Liaw , Aranyak Mehta , Neel Patel

We show an auction-based algorithm to compute market equilibrium prices in a production model, where consumers purchase items under separable nonlinear utility concave functions which satisfy W.G.S(Weak Gross Substitutes); producers produce…

Computer Science and Game Theory · Computer Science 2016-11-26 Junghwan Shin , Sanjiv Kapoor

We study the equilibria of uniform price auctions where many asymmetric bidders have flat demands up to their respective quantity constraints. We present an iterative procedure that systematically finds an equilibrium outcome as well as an…

Theoretical Economics · Economics 2026-04-09 Kiho Yoon

We investigate the most common type of blockchain-based decentralized exchange, which are known as constant function market makers (CFMMs). We examine the the market microstructure around CFMMs and present a model for valuing the liquidity…

Cryptography and Security · Computer Science 2023-06-21 Richard Dewey , Craig Newbold

We develop a unified ascending-auction framework for computing Walrasian equilibria in combinatorial markets with strong substitutes valuations and piecewise-linear payment functions. Our auction extends the celebrated ascending auctions of…

Computer Science and Game Theory · Computer Science 2026-04-14 Taihei Oki , Ryosuke Sato

In this paper, we introduce a novel framework to model the exchange rate dynamics between two intrinsically linked cryptoassets, such as stablecoins pegged to the same fiat currency or a liquid staking token and its associated native token.…

Trading and Market Microstructure · Quantitative Finance 2024-11-14 Philippe Bergault , Louis Bertucci , David Bouba , Olivier Guéant , Julien Guilbert

Automated market makers (AMMs) quote prices from pool state rather than from a limit order book. AMM pools often stay close to a reference price because arbitrageurs correct profitable mispricing. A large part of decentralized finance…

Computational Engineering, Finance, and Science · Computer Science 2026-05-08 Peihao Li , Nadia Dahmani , Wenqi Cai

We establish a general equilibrium theory for systems of large language model (LLM) agents operating under centralized orchestration. The framework is a production economy in the sense of Arrow-Debreu (1954), extended to…

Computer Science and Game Theory · Computer Science 2026-02-26 Jean-Philippe Garnier

Blockchains have popularized the Automated Market Makers (AMMs), where users trade crypto-assets directly with a smart contract, governed by a pricing function embedded in the contract's code. Today, users of AMMs are often forced to accept…

Computer Science and Game Theory · Computer Science 2026-05-28 Yuhao Li , Elaine Shi , Mengqian Zhang

An automated market maker (AMM) provides a method for creating a decentralized exchange on the blockchain. For this purpose, individual investors lend liquidity to the AMM pool in exchange for a stream of fees earned from its operations as…

Mathematical Finance · Quantitative Finance 2025-09-30 Maxim Bichuch , Zachary Feinstein

Market price systems constitute a well-understood class of mechanisms that under certain conditions provide effective decentralization of decision making with minimal communication overhead. In a market-oriented programming approach to…

Artificial Intelligence · Computer Science 2008-02-03 M. P. Wellman

This paper introduces a trade ordering rule that aims to reduce intra-block price volatility in Automated Market Maker (AMM) powered decentralized exchanges. The ordering rule introduced here, Clever Look-ahead Volatility Reduction (CLVR),…

Computer Science and Game Theory · Computer Science 2026-05-29 Robert McLaughlin , Nir Chemaya , Dingyue Liu , Dahlia Malkhi

This paper revisits the Arrow-Debreu general equilibrium framework through the lens of effective trade, emphasizing the distinction between theoretical and realizable market interactions. We develop the Effective Trade Model (ETM), where…

Theoretical Economics · Economics 2025-12-02 Nizar Riane