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.
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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!
If privacy (dark pools) is not addressed you get neverending battles of fighting complexity and exploiters. used to share same concern but recently seem more focused on the 'bridge' part. Nothing stops a DEX to be built on top of renVM's though.
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imo we'll see a lot more dark pools interacting with DeFi primitives when L2 privacy takes off