Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/222424 
Erscheinungsjahr: 
2020
Schriftenreihe/Nr.: 
IFRO Working Paper No. 2020/08
Verlag: 
University of Copenhagen, Department of Food and Resource Economics (IFRO), Copenhagen
Zusammenfassung: 
A new type of Automated Market Makers (AMMs) powered by Blockchain technology keep liquidity on-chain and offer transparent price mechanisms. This innovation is a significant step in the direction of building a more transparent and efficient financial market. This paper explores analytically market mechanisms and shows the conditions when those mechanisms are equivalent. Furthermore, we show that AMM mechanisms inherently create loses for market makers from inefficient prices (dictated by the AMM solutions), however, these mechanisms work well for assets with low volatility. We further analytically explore the losses and quantify them. The paper ends by discussing the design of efficient decentralized exchange compared to traditional Central Limited Order Books (CLOBs) and highlights the former's potential regarding decentralized finance.
Schlagwörter: 
blockchain
decentralized exchanges
automated liquidity providers
auction
mechanism design
JEL: 
D53
G12
Dokumentart: 
Working Paper

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