This leads us into our topic of prop AMMs....Prop AMMs The concept of a “prop AMM” may seem like a contradiction....AMMs by design are open, deterministic systems....Prop AMMs operate completely opposite....What emerges is a bifurcated AMM landscape....The concept of a "prop AMM" may seem like a contradiction.

Competitive Landscape: Options AMMs The main options AMMs include Lyra, Premia, Hegic, and Dopex....Premia is a promising AMM offering American options with competitive prices....Dopex is a hybrid AMM and DOV....With a two-sided AMM like Lyra, a trader that believes the AMM is overpricing volatility can sell those...options back to the AMM.

Key Takeaways: Ultimately, like Airlines, AMMs sell a commodity: liquidity....is difficult as customers mostly care about execution While liquidity is a moat, given the fact that AMMs...and retail investors alike are content to continuously subsidise new competitors, it’s unclear how AMMs...of AMM governance tokens...

...to serve aggregators and professional flow – hence why they’re dubbed “prop AMMs”....The idea that these AMMs are the onchain wrappers for trading firms....Another prop AMM has joined the arena today....But for most of these prop AMMs, there simply is no incentive to doing so....From the user’s perspective, interacting with a prop AMM remains entirely invisible.

Currently all significant AMMs (automated market makers) reside on Ethereum layer 1 and life has been...As discussed in our previous daily Are Airlines the AMMs of Crypto, as the number of AMMs grew and liquidity...Can AMMs provide a mechanism to link their pools on different layers?

As gas costs continue to compress and the inherent flaws of automated market makers (AMMs) come to light...This emerging paradigm will not be dominated by AMMs but rather, order-books....This led to the subsequent advent of the concentrated liquidity AMM under Uniswap v3....Recent research suggests that due to LVR, LPs on AMMs may not actually be profitable.

...with AMMs by utilizing their CoWs, auctions, or RFQ features....AMMs altogether....Conclusion On-chain liquidity was popularized by AMM designs, more specifically, the XYK AMM model....AMM: UniswapX is asking a lot of its passive LPs....AMMs have been affected significantly by IL and JIT liquidity.

DFX Finance is an AMM designed for forex swaps between multiple fiat-backed stablecoins....DFX Finance is an AMM designed for forex swaps between multiple fiat-backed […]...

Simply put, Curve’s stablecoin AMM rewards its liquidity providers with CRV, which can be 1) sold to...Simply put, Curve’s stablecoin AMM rewards its […]...

These AMM designs are XYK, Stableswap, and PCL....Stableswap (blue line): The stableswap AMM design integrates elements of both constant sum AMM and constant...product AMM....constant sum AMM....Since AMMs provide liquidity at stale prices, this is usually not the case.

...first in the crypto exchange landscape, most others focus on one slice (just trading fees, or just AMM...If we analogize to the evolution of exchanges: first-gen DeFi (Uniswap, etc.) was an innovation (AMMs...

Trader Joe’s v1 DEX is a fork of Uni v2 that utilizes the x*y=K (XYK) automated market maker (AMM) model...invariant within each price bin allows traders to enjoy zero-slippage swaps, unlike other constant product AMM...

Thales vaults operate across the Thales AMM and Overtime....Conversely, the AMM suffers significant losses when a user places a longshot parlay (requiring the AMM...It is important to note that this chart is just Overtime AMM volume, not the parlay AMM....The performance of the options AMM should improve over time.

Regardless of your stance, it is hard to deny AMM’s impressive year....I lean towards the camp that AMM’s are here to stay....The main point of contention in AMM discussions is Impermanent Loss....Bancor’s AMM goal is both single-sided exposure and depositor IL protection....AMMs and IL are hot topics on crypto-twitter at the moment.

The flagship AMM design showcasing the power of Valantis is the HOT AMM, built by the Arrakis Finance...Arrakis HOT AMM The Hybrid Order Type (HOT) AMM stands out due to its intent-centric design, which focuses...Orderbook DEXs Onchain trading has two competing systems: Orderbooks and AMMs.

Type: Centralized, order book + AMM for collection bids....Type: Aggregator + AMM. Fees: 1% platform fees, paid by the taker....Tensor has a gamified rewards system to incentivize liquidity on its AMM....This solves the issue of fragmented liquidity among multiple single-LP pools on AMMs....Type: Collection-based AMM. Fees: Only liquidity provider fees.

AMMs More than anything, the AMM camp seems to come from a place of ideology — If we don’t preserve the...Moreover, less profitable LPs means less AMM liquidity....Put simply, LVR is a huge issue for AMMs....CoW Swap’s CoW AMM (f.k.a. function-maximizing AMM) stood out at ETHCC as a clever LVR-aware AMM design...Will AMMs survive?

Singapore’s biggest bank, is diving deeper into crypto despite the bear market and a next-gen options AMM...The main options AMMs include Lyra, Premia, Hegic, and Dopex....Hegic was the first options AMM, allowing traders to select any strike price....Premia is a promising AMM offering American options with competitive prices....Dopex is a hybrid AMM and DOV.

By launching PumpSwap, their own AMM for trading graduated tokens, they’ve executed a textbook vertical...into Raydium’s pools, they became a massive source of trading volume and fee generation for Raydium’s AMM...All new tokens graduating from its launchpad would migrate their liquidity to PumpSwap, Pump’s own AMM...

...prob don’t even realize they’re raydium pools. much harder to own the user than to create a vanilla amm...Pump’s AMM will function as follows: Instant migrations with 0 migration fees (down from 6) Uniswap...with creators, incentivizing long-term trading volume of deployed coins Of course, by launching an AMM...