What the heck is an automated market maker (AMM)?

Uniswap by example

Impermanent Loss in a Nutshell

The Cambrian AMM Explosion

The Correlation Spectrum

  1. The ratio in value between ETH and DAI will not change too much (if it does, that will manifest as impermanent loss)
  2. Lots of fees will be paid in this pool

Market making in a nutshell

Why are CFMMs winning?

From Order Books to AMMs



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Nightly Crypto

Nightly Crypto

Blockchain, bitcoin and decentralized finance education