OASIcs.Tokenomics.2022.4.pdf
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Consistency of Automated Market Makers
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4th International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2022)
Series: Open Access Series in Informatics (OASIcs)
Conference: International Conference on Blockchain Economics, Security and Protocols (Tokenomics) - License:
Creative Commons Attribution 4.0 International license
- Publication Date: 2023-07-24
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Acknowledgements
The first author wishes to thank Jérôme de Tichey for introducing him to the problem of consistency, Guillaume Terradot and Hamza El Khalloufi for numerous conversations.
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Vincent Danos and Weijia Wang. Consistency of Automated Market Makers. In 4th International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2022). Open Access Series in Informatics (OASIcs), Volume 110, pp. 4:1-4:12, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2023)
https://doi.org/10.4230/OASIcs.Tokenomics.2022.4
https://doi.org/10.4230/OASIcs.Tokenomics.2022.4
Abstract
Decentralised Finance has popularised Automated Market Makers (AMMs), but surprisingly little research has been done on their consistency. Can a single attacker extract risk-free revenue from an AMM, regardless of price or other users' behaviour? In this paper, we investigate the consistency of a large class of AMMs, including the most widely used ones, and show that consistency holds.
Subject Classification
ACM Subject Classification
- Theory of computation → Algorithmic mechanism design
Keywords
- Automated Market Makers
- Decentralised Finance
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