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
- Uniswap
- PancakeSwap
- Curve
- SushiSwap
- Bancor
- Balancer
Smart Contracts
Smart contracts source code.