Automatic Market Makers (AMM’s) power the largest DeFi protocol in the world, Uniswap. The simple technology behind them powers billions in daily dollar volume and has created a similar amount of wealth for protocol founders. You may have seen the equation X*Y=K, or a curve like below:
Intuition and math behind DeFi AMM curves
Intuition and math behind DeFi AMM curves
Intuition and math behind DeFi AMM curves
Automatic Market Makers (AMM’s) power the largest DeFi protocol in the world, Uniswap. The simple technology behind them powers billions in daily dollar volume and has created a similar amount of wealth for protocol founders. You may have seen the equation X*Y=K, or a curve like below: