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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…

数理金融 · 定量金融 2024-11-27 Xue Dong He , Chen Yang , Yutian Zhou

Automated Market Makers (AMMs) are major centers of matching liquidity supply and demand in Decentralized Finance. Their functioning relies primarily on the presence of liquidity providers (LPs) incentivized to invest their assets into a…

机器学习 · 计算机科学 2024-04-30 Viraj Nadkarni , Jiachen Hu , Ranvir Rana , Chi Jin , Sanjeev Kulkarni , Pramod Viswanath

Automated Market Makers (AMMs) are essential in Decentralized Finance (DeFi) as they match liquidity supply with demand. They function through liquidity providers (LPs) who deposit assets into liquidity pools. However, the asset trading…

系统与控制 · 电气工程与系统科学 2025-04-01 Viraj Nadkarni , Sanjeev Kulkarni , Pramod Viswanath

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…

分布式、并行与集群计算 · 计算机科学 2026-05-01 Ignat Melnikov , Roman Vlasov , Vladimir Gorgadze , Andrey Seoev , Yury Yanovich

In Decentralized Finance (DeFi), automated market makers typically implement liquidity provisioning protocols. These protocols allow third-party liquidity providers (LPs) to provide assets to facilitate trade in exchange for fees. This…

计算机科学与博弈论 · 计算机科学 2025-07-29 Adithya Bhaskara , Rafael Frongillo , Maneesha Papireddygari

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

The role of a market maker is to simultaneously offer to buy and sell quantities of goods, often a financial asset such as a share, at specified prices. An automated market maker (AMM) is a mechanism that offers to trade according to some…

计算机科学与博弈论 · 计算机科学 2024-02-15 Michael J. Curry , Zhou Fan , David C. Parkes

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 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

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

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

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

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…

交易与市场微观结构 · 定量金融 2025-06-19 Álvaro Cartea , Fayçal Drissi , Marcello Monga

Automated Market Makers (AMMs) have cemented themselves as an integral part of the decentralized finance (DeFi) space. AMMs are a type of exchange that allows users to trade assets without the need for a centralized exchange. They form the…

机器学习 · 计算机科学 2022-11-29 Dev Churiwala , Bhaskar Krishnamachari

Prediction markets allow traders to bet on potential future outcomes. These markets exist for weather, political, sports, and economic forecasting. Within this work we consider a decentralized framework for prediction markets using…

数理金融 · 定量金融 2025-01-10 Hamed Amini , Maxim Bichuch , Zachary Feinstein

Passive liquidity providers (LPs) in automated market makers (AMMs) face losses due to adverse selection (LVR), which static trading fees often fail to offset in practice. We study the key determinants of LP profitability in a dynamic…

交易与市场微观结构 · 定量金融 2025-08-12 Steven Campbell , Philippe Bergault , Jason Milionis , Marcel Nutz

Automated Market Makers (AMMs) are decentralized applications that allow users to exchange crypto-tokens without the need for a matching exchange order. AMMs are one of the most successful DeFi use cases: indeed, major AMM platforms process…

密码学与安全 · 计算机科学 2022-07-20 Massimo Bartoletti , James Hsin-yu Chiang , Alberto Lluch-Lafuente

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…

交易与市场微观结构 · 定量金融 2021-01-11 Bhaskar Krishnamachari , Qi Feng , Eugenio Grippo

An automated market maker (AMM) is a state machine that manages pools of assets, allowing parties to buy and sell those assets according to a fixed mathematical formula. AMMs are typically implemented as smart contracts on blockchains, and…

交易与市场微观结构 · 定量金融 2024-01-29 Kenan Wood , Maurice Herlihy , Hammurabi Mendes , Jonad Pulaj

Decentralized Finance (DeFi) has revolutionized financial markets by enabling complex asset-exchange protocols without trusted intermediaries. Automated Market Makers (AMMs) are a central component of DeFi, providing the core functionality…

数理金融 · 定量金融 2026-02-03 Marco Dessalvi , Massimo Bartoletti , Alberto Lluch-Lafuente
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