Conversation

SBF
@SBF_FTX
3) AMMs have problems. Primarily impermanent loss; or put another way: blindly providing while people pick you off to market moves.
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SBF
@SBF_FTX
4) How about Serum Swap? Well, it's *less bad*: a) gas fees of $0.00002 b) 1 second settlement, so arbs should happen closer to market price but IL is still there.
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SBF
@SBF_FTX
5) So why use it? a) yield: it's a convenient way to drop tokens. e.g. right now there's a 1,000,000 SRM airdrop on Serum Swap b) New project: if you have a new coin and want initial liquidity, it's easy to drop it in an AMM.
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SBF
@SBF_FTX
7) At some point, 'AMM' blurs into 'on-chain trading algorithms and funds', which are real useful things. And on Solana, you can actually build and customize them, because it's cheap and fast. And that lets them be powerful.
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SBF
@SBF_FTX
8) Pools are coming soon. But for now, enjoy the harvest. 1m SRM yield over the next month on these Swaps: SRM/BTC SRM/ETH SRM/USDT SRM/USDC SRM/SOL SRM/YFI SRM/LINK SRM/SUSHI SRM/FTT SRM/FRONT Swap on! Or don't; up to you, really.
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