Arbitrage in automated market makers

One of the most interesting applications of blockchain is given by the automated market makers (AMMs). In the paper, we discuss how arbitrage activity between the AMMs and the other exchange nodes can affect the volumes of assets in liquidity pools of constant function AMMs. In particular, we argue...

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Bibliographic Details
Main Author: Nicola Dimitri
Format: Article
Language:English
Published: Frontiers Media S.A. 2024-10-01
Series:Frontiers in Blockchain
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fbloc.2024.1455070/full