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
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too much big words and thonks
tldr is CEXes experience can emulate AMMs liquidity with additional users limit orders?
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this picture helped me to better visualize what i already know
the end game will be aggregators that execute against both DEX orderbooks + liquidity pools to have maximum liquidity
CEX models can include that liquidty on top of their off-chain orderbooks
same for OTC brokers twitter.com/js_horne/statu…
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yup. Basically you can have AMMs provide on orderbooks instead of (or in addition to) their own special front-end