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Decentralised Finance: AMMs and Trading Strategies by 1q84uy is a document available to read on EtoBox.

This paper examines automated market makers (AMMs) in decentralized finance (DeFi), focusing on constant product markets (CPMs) and their impact on trading and statistical arbitrage. It develops models to optimize trading strategies in CPMs while balancing exchange rate risk and execution costs, utilizing empirical data from Uniswap. The findings demonstrate that execution costs can be accurately estimated and that optimal trading strategies can be derived for both decentralized and centralized exchanges.

Author

1q84uy

Language

EN