Exploring new automated market maker designs

Quick Take

  • AMMs have become the dominant model for decentralized exchanges — with a 93% market share today
  • The success of AMMs can largely be attributed to the ease of providing liquidity. Instead of managing an order book, market makers can simple place assets into liquidity pools
  • After Uniswap, AMMs have tried to optimize parameters to make trading more efficient and better targeted towards specific use cases
Uniswap was the first automated market maker (AMM) with clear product-market fit and usage growth — and since its launch, different teams have tried to fix its limitations for traders and liquidity providers. Instead of a traditional order book, AMMs traders and market makers deposit and withdraw assets from liquidity pools. Prices for trade execution […]

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