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personally, i think trying to pick out which AMM design will win within the hyper-competitive ethereum space this early in the game is very futile but aggregators will win, especially those that cater to high value transactions where gas fees are negligible to those users

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Will Warren

@willwarren

Sep 19, 2020

The DEX design space is massive. There are many viable strategies for pricing liquidity. The best strategy will depend upon the trading pair, market conditions, trade size, + other factors. A diverse market is a healthy market. A healthy market grows the pie, everyone wins. twitter.com/teo_leibowitz/…

찌 G 跻じ 𝙎𝙚𝙣𝙥𝙖𝙞 of the 𝙃𝙚𝙣𝙩𝙖𝙞

@DegenSpartan

Sep 20, 2020

to be more specific probably 1 or 2 aggregators will dominate 90% of the aggregator market volume small traders might still go directly to individual AMM front ends because of gas optimization but do such small value txs even matter in the bigger picture? imo, not really

찌 G 跻じ 𝙎𝙚𝙣𝙥𝙖𝙞 of the 𝙃𝙚𝙣𝙩𝙖𝙞

@DegenSpartan

Sep 20, 2020

i think AMMs will be fragmented based on what type of pairs their design optimizes for, so it becomes an LP decision, not a user decision users will just use aggregators imo larger users really dont care about gas optimization, tx fees are just the cost of doing business

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One thing that I think is cool -- you can aggregate all AMMs naively together by having them all achieve their curves by providing in the same orderbook.

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so imagine that instead of going directly to an AMM: 1) AMM wants x*y=k; so the AMM places offers out to mimic that curve; same with bids 2) when an offer gets filled, it replaces with a bid, and vice versa 3) to trade on the AMM you just trade on the orderbook

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+++ That way all the AMMs on a pair share liquidity and flow, and customers can just go to the orderbook and not have to think about which to use. Also you can use limit orders *and*, if the orderbook supports margin, so do the AMMs. Plus the AMMs can provide on any curve.

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FWIW that's the ultimate vision for AMMs on Serum -- you can trade directly against them using x*y=k, *or* you can just go to the orderbook and they'll all be providing there too

5:51 AM · Sep 20, 2020Twitter Web App

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