6 docs tagged with "AMM"

Understand the evolution from traditional order book exchanges to automated market makers. Learn how DEXs revolutionize trading through smart contracts and liquidity pools.

Deep dive into the constant product formula (x*y=k) that powers Uniswap. Learn the mathematics behind automated market makers, price determination, and how liquidity pools work.

Understand the economics of being a liquidity provider. Learn about impermanent loss, fee generation, risk-return tradeoffs, and strategies for profitable liquidity provision in DeFi.

Learn how arbitrageurs keep AMM prices aligned with markets. Understand arbitrage mechanics, flash loans, multi-hop strategies, and why arbitrage is essential for AMM functionality.

Explore advanced AMM designs beyond the constant product formula. Learn about Curve's StableSwap, Balancer's weighted pools, Uniswap v3's concentrated liquidity, and how different invariant curves optimize for specific use cases.

Deep dive into Curve Finance's StableSwap algorithm. Learn how combining constant sum and constant product formulas creates the most efficient AMM for stablecoins and pegged assets.