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AMM DEX

Non-custodial token swaps.

As long as the token contract complies with the ERC20/ERC721 standards, new trading pairs may be created.

Token price ratios used by the DEX are determined by external arbitrageurs and oracles.

Market makers provide liquidity by supplying their tokens to the smart contract in exchange for a percentage of trading commissions.

Principles​

Decentralized Exchanges (DEXs) allow for direct peer-to-peer cryptocurrency transactions without the need for an intermediary.

DEX vs CEX: Both allow you to buy and sell cryptocurrencies and tokens.

A DEX is autonomous and run by algorithms and smart contracts, while a CEX is run by a company with human management.

Objectives​

Participants

  • Liquidity Providers
  • Swap Users

Why participate?

Desired outcomes

Application and Benefits

Risk Management​

Problems to solve

Risk On Triggers

Risk Off Triggers

Value Capture​

What impact of underlying blockchain?

Problems to solve

  • Losses to MEV

Competition​

Curve vs Uniswap vs Balancer

Market Leaders

  • Uniswap
  • PancakeSwap
  • Curve
  • SushiSwap
  • Bancor
  • Balancer

Smart Contracts​

Smart contracts source code.

Context​

Questions​

What is the most important question this topic raises that current discourse tends to avoid or understate?

  • Which assumption in the standard framing of this topic is most likely to be wrong in a 5-year horizon?
  • How does the DePIN or agent-native lens change what matters most about this topic?
  • Which first principle, if violated, would make the analysis of this topic fundamentally incorrect?