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.
1
10
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.
1
15
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.
2
17