The trouble with automated market makers By Cointelegraph

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The trouble with automated market makers

Automated market makers are a true public good in crypto, enabling genuinely decentralized trading 24/7 and supporting the wider DeFi ecosystems. But theyre not without a host of problems, writes digital economist and academic Christos A. Makridis.

The decentralized finance (DeFi) market has surged since 2021, growing from just over $20 billion to nearly $160 billion as of March 2022, compared with a rise in the total cryptocurrency market from $433 billion to $2.5 trillion over the same period.

The trouble with AMMs.

Liquid gold

research.

Front running

DeFi fees are a source of ongoing revenue, although not all tokens provide holders with a cut.

Challenging business models

Emerging business models

Continue Reading on Coin Telegraph

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The trouble with automated market makers

Automated market makers are a true public good in crypto, enabling genuinely decentralized trading 24/7 and supporting the wider DeFi ecosystems. But theyre not without a host of problems, writes digital economist and academic Christos A. Makridis.

The decentralized finance (DeFi) market has surged since 2021, growing from just over $20 billion to nearly $160 billion as of March 2022, compared with a rise in the total cryptocurrency market from $433 billion to $2.5 trillion over the same period.

The trouble with AMMs.

Liquid gold

research.

Front running

DeFi fees are a source of ongoing revenue, although not all tokens provide holders with a cut.

Challenging business models

Emerging business models

Continue Reading on Coin Telegraph

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