arXiv Open Access 2022

The Quantitative Finance Aspects of Automated Market Markers in DeFi

Stefan Loesch

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Abstrak

Automated Market Makers (AMMs) are a class of smart contracts on Ethereum and other blockchains that "make markets" autonomously. In other words, AMMs stand ready to trade with other market participants that interact with them, at the conditions determined by the AMM. In this this paper, which relies on the existing and growing corpus of literature available, we review and present the key mathematical and quantitative finance aspects that underpin their operations, including the interesting relationship between AMMs and derivatives pricing and hedging.

Topik & Kata Kunci

q-fin.MF

Penulis (1)

Stefan Loesch

Format Sitasi

APA MLA BibTeX

Loesch, S. (2022). The Quantitative Finance Aspects of Automated Market Markers in DeFi. https://arxiv.org/abs/2212.10974

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Informasi Jurnal

Tahun Terbit: 2022
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓