🎯 Description
Constant Function Market Makers (CFMMs) have grown from a simple solution to decentralized trading to a highly dynamic and broad class of decentralized exchanges (DEXs), a significant research focus within decentralized finance, and a convenient building block for more complex decentralized financial derivatives. They now host tens of billions of dollars in available liquidity across multiple different blockchains, and hundreds of billions of volume traded, making them some of the most liquid and widely used decentralized applications.
The available liquidity in a CFMM is supplied by the liquidity providers, who deposit assets in the contracts to passively earn yield and potentially hedge the assets’ relative price motion. Each CFMM gives its liquidity providers a corresponding payoff structure, exposing them to different risks and yields on their assets based on the underlying price motion and trading flow. For example, Balancer maintains a personalized weighted balance on the pooled assets; this includes up to 8 assets. To further understand CFMMs and the payoff
structures, it would be beneficial to define them again briefly formally
📅 Launch Time (UTC)
21st September
🛠 Network
Multi-Chain
🧩 Sector
Protocol
‼️ Sale Details
- Exchange: TBA
- Token price: TBA
- Token type: TBA
🔗 Social Links
Website | Twitter | Discord | Github