Conversation

1) Some brief thoughts on swap.projectserum.com:

Oct 27, 2020

2) NOT INVESTMENT ADVICE.

Oct 27, 2020

3) AMMs have problems. Primarily impermanent loss; or put another way: blindly providing while people pick you off to market moves.

SBF

@SBF_FTX

Oct 27, 2020

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.

SBF

@SBF_FTX

Oct 27, 2020

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.

SBF

@SBF_FTX

Oct 27, 2020

6) What's the future of AMMs on Serum? Pools: docs.google.com/document/d/1lm A generalized primitive that can create: a) customized AMMs b) AMMs trading on orderbooks c) Pooled funds d) borrow/lending e) yield pools f) lots of other stuff

docs.google.com

Pools: a generalized primitive [EXTERNAL]

Pools: a generalized primitive A Pool P works as follows: It’s an account that can hold assets You can create P by sending in some assets; you will be given back a Pool Token T which represents your...

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.

3:02 PM · Oct 27, 2020Twitter Web App

Replying to

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.