Automated Market Makers: A Practical Guide to Decentralized Exchanges and Cryptocurrency Trading

Author:   Miguel Ottina ,  Peter Johannes Steffensen ,  Jesper Kristensen
Publisher:   APress
Edition:   1st ed.
ISBN:  

9781484286159


Pages:   293
Publication Date:   02 January 2023
Format:   Paperback
Availability:   Manufactured on demand   Availability explained
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Automated Market Makers: A Practical Guide to Decentralized Exchanges and Cryptocurrency Trading


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Author:   Miguel Ottina ,  Peter Johannes Steffensen ,  Jesper Kristensen
Publisher:   APress
Imprint:   APress
Edition:   1st ed.
Weight:   0.474kg
ISBN:  

9781484286159


ISBN 10:   1484286154
Pages:   293
Publication Date:   02 January 2023
Audience:   Professional and scholarly ,  Professional & Vocational
Format:   Paperback
Publisher's Status:   Active
Availability:   Manufactured on demand   Availability explained
We will order this item for you from a manufactured on demand supplier.

Table of Contents

Chapter 1: Introduction to Automated Market Makers  1.1. Introduction to  Decentralized Finance (DeFi)  1.2.  What is  an Automated Market Maker (AMM) 1.3.  Decentralized Exchanges (DEX) 1.4.  Liquidity Pools Chapter 2: Uniswap v2 1.1 Introduction 1.2 Trading perspective 1.3 Providing liquidity 1.4 Optimal routing among DEX’s Chapter 3: Balancer 2.1 The Constant Value Function 2.2 Spot price 2.3 Trading formulas 2.4 All-asset deposit 2.5 Single-asset deposit 2.6 All-asset withdrawal 2.7 Single-asset withdrawal 2.8 Pool tokens swap Chapter 4: Curve Finance 3.1 Introduction 3.2 Mathematical preliminaries 3.3 Trading formulas 3.4 All-asset deposit 3.5 All-asset withdrawal 3.6 Single-asset withdrawal 3.7 Curve LP token swap Chapter 5: Uniswap v3 4.1 Introduction 4.2 Ticks 4.3 Concentrated liquidity 4.4 LP position value 4.5 Impermanent loss 4.6 Position minting 4.7 Uniswap v3 position vs. short put options

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Author Information

Miguel Ottina is a Mathematician born and raised in Buenos Aires. He obtained a degree in Mathematics in 2005 and a Ph.D. in Mathematics in 2009, both from the University of Buenos Aires, and worked as a Professor for many years. He has published several peer-reviewed academic articles and has given more than fifteen conference presentations. In February 2022, he started working in the Web3 industry, ap- plying his mathematical knowledge and expertise to the cutting- edge field of cryptocurrencies and Decentralized Finance, and he has already become an expert in Automated Market Makers. After finding out that the literature on Automated Market Makers is frequently incomplete and not precise, he decided to write this book with Peter and Jesper so as to provide newcomers with a friendly, clear, and thorough explanation of the primary Automated Market Makers, and to offer developers a solid, broad and profound exposition which will allow them to gain a deeper understanding in order to continue building. Peter Johannes Steffensen is a Mathematician holding a Ph.D. in Mathematics from the University of Aarhus. Since then, he has been working as a software architect in different financial institutions and has also had part-time university jobs. He has worked as a consultant in the Web3 space for over a year and saw there the perfect possibility to apply his mathematical knowledge and experience from the financial industry. His motivation for writing this book is to explain how the leading Automated Market Makers work and to provide a single point of entry for people that look for information on this topic.Jesper Kristensen has worked in the Web3 space for years in both consulting and full-time capacities. Jesper holds a Ph.D. and two master’s degrees in Applied and Engineering Physics from Cornell University. Jesper worked four years at General Electric Research, publishing nine articles, one book chapter, and giving seventeen conference presentations and invited talks. Following this, he did stints in the Tech industry and Finance for three years, and has led a large Web3 Research department. His primary motivation for writing this book is twofold. First, when Jesper was first introduced to the Web3 space, he noticed that a lot of confusion about how Automated Market Makers worked circulated and that multiple people gave incorrect answers around their inner workings —and this book seeks to settle this type of conflicts. Second, he wants to offer a one-stop complete guide to learn about Automated Market Makers.

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