Automated market makers : a practical guide to decentralized exchanges and cryptocurrency trading /

Explore Automated Market Makers (AMMs), the underlying protocols used by decentralized exchanges (DEX) to allow users to perform trades of cryptocurrencies in a decentralized way with no middlemen. This book provides a thorough study and a clear-cut exposition of the principal AMMs (Uniswap v2 and v...

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Detalles Bibliográficos
Clasificación:Libro Electrónico
Autores principales: Ottina, Miguel (Autor), Steffensen, Peter Johannes (Autor), Kristensen, Jesper (Autor)
Formato: Electrónico eBook
Idioma:Inglés
Publicado: New York : Apress, 2023.
Temas:
Electronic trading of securities.
Cryptocurrencies.
Finance > Data processing.
Blockchains (Databases)
Acceso en línea:Texto completo (Requiere registro previo con correo institucional)
Tabla de Contenidos:
  • Intro
  • Table of Contents
  • About the Authors
  • About This Book
  • Chapter 1: Introduction to AMMs
  • 1.1 Preliminary Notions
  • 1.2 Historical Overview
  • 1.3 Summary
  • Chapter 2: Uniswap v2
  • 2.1 Trading in a Uniswap v2 pool
  • 2.1.1 Spot Price
  • 2.1.2 Accounting for Fees
  • 2.2 Impact of the Trades on the Price
  • 2.2.1 A Simple Example
  • 2.2.2 Analysis of Two Consecutive Trades
  • 2.2.3 Impact of the Trade Size on the Average Purchase Price
  • 2.2.4 Impact of the Trade Size on the Average Sell Price
  • 2.2.5 Impact of the Trade Size on the Price Growth Ratio
  • 2.3 Providing Liquidity
  • 2.3.1 Minting LP Tokens
  • Starting the Pool
  • 2.3.2 Burning LP Tokens
  • Distribution of Fees
  • 2.3.3 Pool Value and Impermanent Loss
  • Computing Impermanent Loss Without Fees
  • Accounting for Fees
  • 2.3.4 LP Token Swap
  • Common Token Case
  • No In-Common Token Case: Oracle Swap
  • 2.4 Motivating DEX Aggregators
  • 2.5 Summary
  • Chapter 3: Balancer
  • 3.1 The Constant Value Function
  • 3.2 Spot Price
  • 3.2.1 Constant Value Distribution
  • 3.3 Trading Formulae
  • 3.4 Providing Liquidity
  • 3.4.1 All-Asset Deposit
  • 3.4.2 Single-Asset Deposit
  • 3.4.3 All-Asset Withdrawal
  • 3.4.4 Single-Asset Withdrawal
  • 3.5 Pool Tokens Swap
  • 3.5.1 Swap of Pool Tokens That Belong to Pools of Different Types
  • 3.6 Summary
  • Chapter 4: Curve Finance
  • 4.1 The StableSwap Invariant
  • 4.2 Mathematical Preliminaries
  • 4.2.1 Finding the Parameter D
  • 4.3 Trading Formulae
  • 4.3.1 Taking Fee into Consideration
  • 4.4 All-Asset Deposit
  • 4.5 All-Asset Withdrawal
  • 4.6 Single-Asset Withdrawal
  • 4.7 StableSwap LP Token Swap
  • 4.8 Summary
  • Chapter 5: Uniswap v3
  • 5.1 Ticks
  • 5.1.1 Initialized Ticks
  • 5.1.2 Tick Spacing
  • 5.2 Liquidity Providers' Position
  • 5.3 Impermanent Loss
  • 5.4 Multiple Positions
  • 5.5 Protocol Implementation
  • 5.5.1 Variables
  • 5.5.2 Fees
  • 5.5.3 Trades
  • 5.5.4 The swap Function
  • 5.5.5 Example
  • 5.6 LP Tokens
  • 5.6.1 Minting LP Tokens
  • 5.6.2 Modifying the Position: Part I
  • 5.6.3 Update the Position
  • 5.6.4 Tick Class
  • 5.6.5 Burning LP Tokens
  • 5.7 Analysis of Liquidity Provisioning
  • 5.7.1 Capital Efficiency
  • 5.7.2 Independence with Respect to Other Liquidity Providers
  • 5.8 Summary
  • References
  • Index

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