The FEYNMAN technique of learning:
STEP 1 - Pick and study a topic
STEP 2 - Explain the topic to someone, like a child, who is unfamiliar with the topic
STEP 3 - Identify any gaps in your understanding
STEP 4 - Review and Simplify! 🧠
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I like this approach, can someone explain AMM models to me in one tweet?
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Found these useful
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Quote Tweet
At its core, AMM is market making enhanced by smart contracts
When you understand this simple fact it's clear that:
1) AMM is the future
2) we're still very early
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"AMM is market making enhanced by smart contracts"... That's also called high frequency trading enhanced by AI, only AMM's run on a clunky and slow database.
1) If the model does not enable HFT then it's irrelevant.
2) AMM's are adding front-end complexity to a backend problem.
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AMMs are cool because:
1) they make it *easy* to provide mediocre liquidity, which can be great for a new project without a market maker
2) more complex versions can let you have on-chain trading algos, which can be useful because they're transparent
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3) collective pools are great receptacles for yield etc.
however, I think claims that AMMs are really good for things *other* than those mostly fall flat.
Collective pools is good for many reasons, not only yields, this is a good point I agree should be discussed further.
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yup!
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Show replies
"AMM is market making RESTRICTED BY a smart contract"
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