An Analysis of Uniswap Markets

@article{Angeris2020AnAO,
  title={An Analysis of Uniswap Markets},
  author={Guillermo Angeris and Hsien-Tang Kao and Rei Chiang and C. Reinold Noyes and T. Chitra},
  journal={ERN: Other Microeconomics: General Equilibrium \& Disequilibrium Models of Financial Markets (Topic)},
  year={2020}
}
  • Guillermo Angeris, Hsien-Tang Kao, +2 authors T. Chitra
  • Published 1 November 2019
  • Economics, Computer Science, Mathematics
  • ERN: Other Microeconomics: General Equilibrium & Disequilibrium Models of Financial Markets (Topic)
Uniswap — and other constant product markets — appear to work well in practice despite their simplicity. In this paper, we give a simple formal analysis of constant product markets and their generalizations, showing that, under some common conditions, these markets must closely track the reference market price. We also show that Uniswap satisfies many other desirable properties and numerically demonstrate, via a large-scale agent-based simulation, that Uniswap is stable under a wide range of… 
Dynamic Curves for Decentralized Autonomous Cryptocurrency Exchanges
One of the exciting recent developments in decentralized finance (DeFi) has been the development of decentralized cryptocurrency exchanges that can autonomously handle conversion between different
Why Stake When You Can Borrow?
TLDR
This model combines birth-death Polya processes and risk models adapted from the credit derivatives literature to assess token inequality and return profiles and finds that there is a sharp transition between 'safe' and 'unsafe' derivative usage.
Empirical Analysis of EIP-1559: Transaction Fees, Waiting Time, and Consensus Security
  • Yulin Liu, Yuxuan Lu, Kartik Nayak, Fan Zhang, Luyao Zhang, Yinhong Zhao
  • Economics, Computer Science
  • 2022
Transaction fee mechanism (TFM) is an essential component of a blockchain protocol. However, a systematic evaluation of the real-world impact of TFMs is still absent. Using rich data from the
Fusing Blockchain and AI with Metaverse: A Survey
  • Qinglin Yang, Yetong Zhao, Huawei Huang, Zibin Zheng
  • Computer Science
  • 2022
TLDR
How Blockchain and Artificial Intelligence fuse with it is discussed by investigating the most related studies across the metaverse components, digital currencies, AI technologies and applications in virtual world, and blockchain-empowered technologies.
4th International Symposium on Foundations and Applications of Blockchain 2021 (FAB 2021)
First-generation blockchains provide probabilistic finality: a block can be revoked, albeit the probability decreases as the block “sinks” deeper into the chain. Recent proposals revisited
A Note on Optimal Fees for Constant Function Market Makers
TLDR
In a setting of multiple competing liquidity pools, it is shown that no race to the bottom occurs, but instead pure Nash equilibria of optimal fees exist and it is theoretically proved the existence of these Equilibria for pools using the constant product trade function used in popular CFMMs.
A Note on Privacy in Constant Function Market Makers
TLDR
It is shown that privacy is impossible with the usual implementations of CFMMs under most reasonable models of an adversary and some mitigating strategies are provided.
A Survey of Verification, Validation and Testing Solutions for Smart Contracts
TLDR
This paper group the existing solutions that attempt to tackle smart contract testing into following categories: public test networks, security analysis tools, blockchain emulators and blockchain simulators, and analyzes them to show what their pros and cons are.
A theory of Automated Market Makers in DeFi
TLDR
A general solution to the arbitrage problem is devised, the main game-theoretic foundation behind the economic mechanisms of AMMs, by abstracting from the actual economic mechanisms used in implementations and identifying sufficient conditions which ensure the relevant properties.
A2MM: Mitigating Frontrunning, Transaction Reordering and Consensus Instability in Decentralized Exchanges
TLDR
It is shown that DEX arbitrage and trade routing among similar AMMs can be performed efficiently and atomically onchain within smart contracts, leading to less stale blocks and better blockchain security.
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 47 REFERENCES
Celo: A Multi-Asset Cryptographic Protocol for Decentralized Social Payments
Two of the biggest barriers to the large-scale adoption of cryptocurrencies as a means of payment are ease-of-use and purchasing-power volatility. We introduce Celo, a protocol that addresses these
Formal Specification of Constant Product (Xy=k) Market Maker Model and Implementation
  • (2018).
  • 2018
Bancor Protocol
  • (2017).
  • 2017
Balancer: A non-custodial portfolio manager
  • liquidity provider, and price sensor.
  • 2019
Balancer: A non-custodial portfolio manager, liquidity provider, and price
  • 2019
and Rene Reinsberg
  • Celo: A multi-asset cryptographic protocol for decentralized social payments.
  • 2017
A Practical Liquidity-Sensitive Automated Market Maker
TLDR
This research presents a meta-modelling architecture that automates the very labor-intensive and therefore time-heavy and therefore expensive and expensive process of manually designing and implementing artificial-moneysettling systems.
Stochastic Differential Equations: An Introduction with Applications (sixth edition, sixth corrected printing ed.)
  • 2013
Stochastic Differential Equations: An Introduction with Applications. Universitext, Berlin Heidelberg New York Dordrecht London: Springer, sixth edition, sixth corrected printing
  • 2013
Stochastic Differential Equations: An Introduction with Applications. Universitext. Springer, Berlin Heidelberg New York Dordrecht London, sixth edition, sixth corrected printing
  • 2013
...
1
2
3
4
5
...