I don't think there's much alpha left in designing new AMM invariants The next generation of DEX features are going to be about fair execution and tx cost minimization, not new shapes for reserves curves

May 8, 2022 · 7:58 PM UTC

75
37
30
716
It brings me no pleasure to report this, since I love messing around in Desmos and calling it research
1
2
1
89
Though there's not much research left to be done into AMM invariants, I expect the topic will still produce quite a lot of Research
9
1
2
100
Replying to @danrobinson
Yeah, you really think so?
4
3
3
73
Prove me wrong!
5
Replying to @danrobinson
would be great if the next generation of DEXes worked on being good for retail LPs again.
1
15
First have to take care of the trader side—otherwise RFQ and aggregators will disintermediate all the retail flow anyway But I think a focus on fair execution is the best hope for passive LPs too
1
1
9
more replies
Replying to @danrobinson
at the moment, what would you say is the biggest limitation of current AMMs that would inspire people to keep looking for an alternative?
1
3
Gas cost (including from fragmentation of liquidity) is a really significant one
2
1
10
Replying to @danrobinson
@ElasticSwap he probably don't know
1
3
I definitely don’t
1
1
more replies
Replying to @danrobinson
Are you talking about CoWswap? 😜
1
19
Replying to @danrobinson
What would fairness mean? Also tx cost minimization 👀 have you heard of sudoAMM
3
16
Replying to @danrobinson
until we figure out how to connect these things to real world measures of economic activity. there's a whole set of potentially important inputs to exchange rates we haven't even begun to engage with
1
12
Replying to @danrobinson
i agree
7
Replying to @danrobinson
If I wanted to have exposure to some arbitrary payoff function (like a call option), I could dynamically reproduce the payoff by trading, right? (This is how option are hedged.) Could I create an AMM that would do this dynamic reproduction with an AMM and arbitrage traders?
4
7
Replying to @danrobinson
Sooo L2s?
1
3
Replying to @danrobinson
Fun fact: @project_shutter can be used to build a front-running protected DEX, either on the application level using on-chain Shutter: blog.shutter.network/shutter… Or on top of a "shutterized" L2: blog.shutter.network/announc…

Shutter Alpha Released on the Testnet!

We are excited to release the alpha version of Shutter, deployed on the Goerli testnet. Check out our example app!

blog.shutter.network
1
1
Replying to @danrobinson
“Fair execution” is a whole genre though.
3
Replying to @danrobinson
@SaveToNotion #tweet #amm #defi #research
1
2
Replying to @danrobinson
How about having an constant product AMM for a lending/borrowing protocol. Where both interest rate and collateral factor are market driven.
2
Replying to @danrobinson
The next generation of DEX features are going to be about plugging into the next-generation infrastructure currently taking over DeFi. Winners will be the ones who recognize the flywheel and build on it.
This tweet is unavailable
2
Replying to @danrobinson
Is it a given that DEXs will have equivalent or improved liquidity when designed with fairer execution?
2
Replying to @danrobinson
Faster chains / rollups will enable more CLOBs similar to @dYdX and @ProjectSerum and @mangomarkets, but CLOBs need to attract passive liquidity providers. @cellfi_io can enable DeFi users to be LP on CLOBs, and capture yield from volatility + dex rebate (diff from @Uniswap v3)
1
1
Replying to @danrobinson
I think experimenting with time is remaining. Position starts to auto shift as per time as they are about to go out of range. If able to find an optimized way it'll allow us to have a mountain like liquidity at the current price at most times.
1
Replying to @danrobinson
Are you sure? Singularity by @RevenantLabs is gonna be unique! Coming soon!! $FTM $CREDIT $RVNT
1
Replying to @danrobinson
Privacy based AMM's. Cross-chain AMM's. Think AMM's as mixers , private amounts of liquidity at certain prices, any chain. Tech's there, just gotta put the pieces together.
1
Load more