Cogent break down of the issues with AMMs.
AMMs are a huge leap forward for bootstrapping new markets from scratch... a launch pad where a market can grow until it is large enough to convince sophisticated MMs that it's worthwhile to compete.
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Cogent break down of the non-issues with AMMs.
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This thread is the purest instance I’ve seen of a very common misunderstanding of how AMMs work.
It’s just wrong. The math in it is wrong, the mechanics are wrong, and as a result, the conclusion is wrong. twitter.com/KyleSamani/sta…
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AMMs exist bc they have a strong value proposition: much lower bar for spinning up a functional market. Just takes one person to deposit tokens into a contract.
Order books aren't functional unless there's at least one active always-online market maker.
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