The Tension Between Divergence Loss and Profit in Automated Market Makers
In today’s post we take the perspective of a liquidity provider (LP) and ask: how much you can expect to earn by providing tokens to the reserve pools?
Cost of Price Manipulation in Uniswap and Balancer
Uniswap, Balancer, and Curve have achieved to construct purely peer-to-peer exchanges which do not require any intermediary, and attracted already many users. But it is important to bear in mind that things could go wrong when using these AMMs naively as a price oracles.
Automated Market Making Mechanisms and Issues in Uniswap, Balancer, and Curve
Early decentralized exchange (DEX) proposals took their inspiration from classical exchange markets and made use of order books to match sell and buy orders. A complementary approach to offchain order books for decentralized exchanges uses the concept of automated market makers (AMMs). In this post we look at the basics of the following three AMM projects: Uniswap, Balancer, and Curve.
Market Making in Crypto Exchanges: An Introduction
Market makers at stock exchanges are companies or individuals who stand ready to buy and sell securities. Similarly, market makers
Censorship of Harmful Data in Blockchains
Public blockchains allow insertion of arbitrary data. Even specific-purpose blockchains like Bitcoin already contain a lot of non-financial data. Although this data insertion can be beneficial in some use cases (e.g. proof of existence), it can also cause damage. If a blockchain contained videos with instructions on how to torture someone, there would immediately be broad consensus that this data must be deleted. But since blockchains are supposed to be immutable databases, the question is: what can be done if this happens?
What are the Benefits of Threshold Signatures for Crypto Wallets?
The security of your crypto-assets depends on one piece of information that you must protect: your private key. If your private key is stolen, all your assets can be stolen. If your private key is lost, all your assets are lost.
Immutability: Is There a Limit?
Any information stored in a blockchain is supposed to be preserved forever, nobody will be able to change it or even less erase it. But is this really true? Is there any chance that governments or private groups with enough money to finance costly attacks might delete information from a blockchain?
Publishing Text and Images in Bitcoin
Blockchains are already used to store non-financial data for diverse purposes, e.g. to prove authorship of ideas or to prove the existence of a document. One of the largest files stored successfully into the Bitcoin blockchain is an image of Nelson Mandela.
Polkadot and Substrate: a Promising yet Challenging Blockchain Technology
If you’ve been following crypto news over the past few months, you have probably heard the words Polkadot and Substrate.
A Short Guide Through the Universe of Blockchain Based Micropayment Systems
Micropayment take place in pay-as-you-go software service models, micro donations, and the Internet of Things (IoT). In these contexts payments
On Ethereum Performance Evaluation Using PoA
Lately, there has been a lot of talk about permissioned blockchains, in which only certain entities have the authority to
Some Insights into Cardano ´s Blockchain
In this blog post, we present a high-level overview of the paper describing the Ouroboros Proof of Stake protocol implemented in Cardano´s blockchain. After the overview follow some comments about theoretical aspects of the protocol.
In general, Proof of Stake (PoS) consensus protocols elect the network nodes responsible to send the next block to the blockchain on the basis of the nodes’ amount of stake.