Systematization of knowledge : constant function market makers

Michele Fabi, Myriam Kassoul, and Julien Prat

We provide an overview of the academic literature on Automated Market Makers for Decentralized Exchanges. Our review puts an emphasis on contributions from researchers in economics and finance. We cover papers that study the optimal design of Automated Market Makers. Then we discuss models that leverage the insights from the literature on two-sided markets to characterize the equilibrium size of liquidity pools and the incentives of liquidity providers. Finally, we review recent research on the interactions between Miner Extractible Value and Decentralized Exchanges.

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Year of publication:	2024
Authors:	Fabi, Michele ; Kassoul, Myriam ; Prat, Julien
Published in:	The Elgar companion to decentralized finance, digital assets and blockchain technologies. - Cheltenham, UK : Edward Elgar Publishing, ISBN 978-1-0353-0776-0. - 2024, p. 191-216
Subject:	Constant function market makers \| Automated market makers \| Decentralized exchanges \| Miner extractable value

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz im Buch ; Book section
Language:	English
Other identifiers:	10.4337/9781035307760.00015 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10015061699