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...

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.

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?

I find this really interesting because it further adds credence to the theory that AMM structures are...The core philosophy of AMMs is to empower retail: let them provide liquidity and trade by making the...I’d encourage you to read the whole post; breaking down AMM profitability is an important research pillar...

...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...

A common question with the adoption of LSTs is whether or not they will become more prevalent in AMM...In Ethereum, all AMM’s utilize WETH as the base pair and enables it as the main routing token (i.e. if...In Ethereum, all AMM’s utilize WETH as the ba...

CoW Swap debuted their new “LVR Aware” AMM....Today, vanilla/plain AMMs lose a lot of money to LVR....For eg, If ETH is $2k on an AMM and CEX, and then goes to $2.1k on a CEX, the AMM should be aware of...that and reprice ETH in the AMM to $2.1k....The CoW AMM is aware. Essentially, solvers will bid to rebalance the CoW AMM.

...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.

So this is actually an AMM....It’s kind of a virtual AMM that’s running on this blockchain, but all of the same rules apply....And now pretty much all of the major AMMs are doing some variation of that....So I think there’s going to be continuing innovation and ongoing development of Ethereum based AMMs.

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.

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 […]...

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 […]...

...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.

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.

SUSHI-ETH pool), in order to attract liquidity and incentivize projects to launch on PancakeSwap’s AMM...Don't let the name fool you, PancakeSwap has quickly become a serious AMM and, with its token emission...

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.

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...

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.

DEX aggregators source liquidity, while AMMs/MMs must surface liquidity, and therefore, aggregators compete...for flow, while AMMs compete for LP capital....The AMM comparable here is strategy protocols (Alpha, Yearn, etc.), which have the strongest incentives...As for (b), DEX aggregators and AMMs that implement additional fees, as well as positive slippage (1inch...