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Automated market makers (AMMs) are smart contracts that automatically trade electronic assets according to a mathematical formula. This paper investigates how an AMM's formula affects the interests of liquidity providers, who endow the AMM…

其他计算机科学 · 计算机科学 2021-10-20 Daniel Engel , Maurice Herlihy

Decentralized exchanges are widely used platforms for trading crypto assets. The most common types work with automated market makers (AMM), allowing traders to exchange assets without needing to find matching counterparties. Thereby,…

综合经济学 · 经济学 2024-02-12 Matthias Hafner , Helmut Dietl

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…

数理金融 · 定量金融 2025-09-30 Maxim Bichuch , Zachary Feinstein

With the emergence of decentralized finance, new trading mechanisms called Automated Market Makers have appeared. The most popular Automated Market Makers are Constant Function Market Makers. They have been studied both theoretically and…

交易与市场微观结构 · 定量金融 2023-11-21 Philippe Bergault , Louis Bertucci , David Bouba , Olivier Guéant

Automated Market Makers (AMMs) are a central component of decentralized exchanges, yet their equilibrium foundations and microeconomic mechanisms remain incompletely understood. This paper develops a dynamic equilibrium framework for…

综合经济学 · 经济学 2026-03-10 Chengqi Zang , Zhenghui Wang , Weitong Zhang

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…

分布式、并行与集群计算 · 计算机科学 2021-09-01 Daniel Engel , Maurice Herlihy

Automated Market Makers (AMMs) are an integral component of the decentralized finance (DeFi) ecosystem, as they allow users to exchange crypto-assets without the need for trusted authorities or external price oracles. Although these…

计算机科学中的逻辑 · 计算机科学 2024-02-13 Daniele Pusceddu , Massimo Bartoletti

Within this work we consider an axiomatic framework for Automated Market Makers (AMMs). AMMs are smart contracts that set prices for swaps on a pool of assets. By imposing reasonable axioms on the underlying utility function, we are able to…

数理金融 · 定量金融 2025-02-04 Maxim Bichuch , Zachary Feinstein

To trade tokens in cryptoeconomic systems, automated market makers (AMMs) typically rely on liquidity providers (LPs) that deposit tokens in exchange for rewards. To profit from such rewards, LPs must use effective liquidity provisioning…

交易与市场微观结构 · 定量金融 2025-01-15 Thanos Drossos , Daniel Kirste , Niclas Kannengießer , Ali Sunyaev

Constant function market makers (CFMMs) are the most popular type of decentralized trading venue for cryptocurrency tokens. In this paper, we give a very general geometric framework (or 'axioms') which encompass and generalize many of the…

最优化与控制 · 数学 2023-08-17 Guillermo Angeris , Tarun Chitra , Theo Diamandis , Alex Evans , Kshitij Kulkarni

Automated market makers (AMMs) are one of the most prominent decentralized finance (DeFi) applications. AMMs allow users to trade different types of crypto-tokens, without the need to find a counter-party. There are several implementations…

形式语言与自动机理论 · 计算机科学 2023-06-22 Massimo Bartoletti , James Hsin-yu Chiang , Alberto Lluch-Lafuente

Automated Market Makers (AMMs) are a class of smart contracts on Ethereum and other blockchains that "make markets" autonomously. In other words, AMMs stand ready to trade with other market participants that interact with them, at the…

数理金融 · 定量金融 2022-12-22 Stefan Loesch

Automated market makers (AMMs) are a new type of trading venues which are revolutionising the way market participants interact. At present, the majority of AMMs are constant function market makers (CFMMs) where a deterministic trading…

交易与市场微观结构 · 定量金融 2024-07-25 Marcello Monga

In decentralized finance, any individual can pool their assets into an automated market maker (AMM) -- herein we focus on the constant product market maker (CPMM) -- in exchange for a claim on a fraction of future pool assets and fees…

数理金融 · 定量金融 2026-01-27 Maxim Bichuch , Zachary Feinstein

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.…

交易与市场微观结构 · 定量金融 2024-11-14 Philippe Bergault , Louis Bertucci , David Bouba , Olivier Guéant , Julien Guilbert

We develop an axiomatic theory for Automated Market Makers (AMMs) in local energy sharing markets and analyze the Markov Perfect Equilibrium of the resulting economy with a Mean-Field Game. In this game, heterogeneous prosumers solve a…

理论经济学 · 经济学 2026-01-01 Michele Fabi , Viraj Nadkarni , Leonardo Leone , Matheus X. V. Ferreira

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:…

交易与市场微观结构 · 定量金融 2025-02-13 Austin Adams , Ciamac C. Moallemi , Sara Reynolds , Dan Robinson

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…

密码学与安全 · 计算机科学 2023-06-21 Richard Dewey , Craig Newbold

Two popular forms of automated market makers are constant sum and constant product (CSMM and CPMM respectively). Each has its advantages and disadvantages: CSMMs have stable exchange rates but are vulnerable to arbitrage and can sometimes…

交易与市场微观结构 · 定量金融 2022-04-07 Alexander Port , Neelesh Tiruviluamala

We investigate the market microstructure of Automated Market Makers (AMMs), the most prominent type of blockchain-based decentralized exchanges. We show that the order execution mechanism yields token value loss for liquidity providers if…

交易与市场微观结构 · 定量金融 2021-07-22 Agostino Capponi , Ruizhe Jia
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