Conversation

SBF
@SBF_FTX
3) One thing you can do on Serum is build an AMM, just like Uniswap. The difference is just that it's faster and cheaper. Does that matter?
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SBF
@SBF_FTX
4) It does! The biggest thing: say there's an ETH/USDC pool and ETH slowly drops 1%. On Serum, someone will arb it when it's good by ~35bps or so. On ETH -- there is a significant gas cost, and also uncertainty in whether you'll get filled. That means adverse selection.
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CriticalB
@planb4v
Replying to
@SBF_FTX
and
@SBF_Alameda
Question, since the speed on serum is superfast, why can't a regular order book model be used? Just an improved AMM inherently has same risks as on ETH, just a lil bit less...
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