Back to the Basics: Uniswap, Balancer, Curve Understanding DeFi fundamentals is crucial for analyzing newer projects. In this thread I’ll summarize over 100 pages of AMM research and explain exactly how these three protocols work. Try to follow the math, it’s interesting. 1/55... See more

Prices of assets in the pool are algorithmically determined using the Automated Market Maker (AMM) algorithm. AMM works by maintaining a Constant Product based on the amount of liquidity on both sides of the pool. Let’s continue the ETH-DAI liquidity pool example, using 100 ETH and 20,000 DAI. To calculate the Constant Product, Uniswap will

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