Automated Market Makers: A Practical Guide to Decentralized Exchanges and Cryptocurrency Trading (Paperback)

Explore Automated Market Makers (AMMs), the underlying protocols used by decentralized exchanges (DEX) to allow users to perform trades of cryptocurrencies in a decentralized way with no middlemen. This book provides a thorough study and a clear-cut exposition of the principal AMMs (Uniswap v2 and v3, Balancer, and Curve).
You'll receive a detailed description of how these AMMs work, unveiling the mathematics behind them and showing plenty of examples as well as novel proofs for several interesting facts. Each chapter describes an AMM's core idea and derives the mathematical formulas used in the code, giving careful explanations of the logical thinking involved and detailing the steps needed to reach those formulas. All these explanations are complemented with thoughtfully chosen examples which further help to enlighten the readers on how the formulae work. In addition, the relevant parts of the codes of the AMMs are shown after explaining each formula so that the actual implementation of the formulae can be seen.
In a traditional trading market a buy order has to be matched with a sell order to achieve a trade. However, for an AMM, users trade against the protocol itself, a smart contract, or a community pool of funds. In simple terms this is an open source computer program in which mathematical formulas define prices. Automated Market Makers examines this critical point revealing that no banks or intermediaries are necessary, giving crucial financial access to a much larger crowd, regardless of who they are with less barriers to access.

What You'll Learn

• Understand the principals of decentralized finance (DeFi)
• Grasp mathematical formulae that underpin decentralized exchanges
• Work with Solidity programming language
• Review current industry best practices

Who This Book Is For

• Those new to Blockchain and Cryptocurrency trading, who want to learn more about AMMs
• Developers who want to dive deeper into the core features of AMM platforms
• Investors and venture capitalists who want to know more about new emerging technologies

探索自動化市場製造商（AMM），這是去中心化交易所（DEX）使用的底層協議，允許用戶在去中心化的方式中進行加密貨幣交易，無需中間人。本書提供了對主要AMM（Uniswap v2和v3、Balancer和Curve）的深入研究和清晰的闡述。

您將獲得對這些AMM如何運作的詳細描述，揭示其背後的數學原理，並展示大量的例子以及對幾個有趣事實的新證明。每一章節描述了一個AMM的核心思想，並推導出代碼中使用的數學公式，詳細解釋了其中的邏輯思維，並詳細說明達到這些公式所需的步驟。所有這些解釋都配有精心選擇的例子，進一步幫助讀者理解公式的工作原理。此外，在解釋每個公式之後，還會顯示AMM代碼的相關部分，以便查看公式的實際實現。

在傳統的交易市場中，買單必須與賣單匹配才能進行交易。然而，對於AMM，用戶與協議本身、智能合約或社區資金池進行交易。簡單來說，這是一個開源的計算機程序，其中數學公式定義了價格。《自動化市場製造商》探討了這一關鍵點，揭示了不需要銀行或中介的重要性，為更廣泛的人群提供關鍵的金融訪問，無論他們是誰，都能降低進入障礙。

您將學到什麼：
- 理解去中心化金融（DeFi）的原則
- 掌握支撐去中心化交易所的數學公式
- 使用Solidity編程語言
- 審查當前行業最佳實踐

本書適合對區塊鏈和加密貨幣交易新手，想要了解更多關於AMM的人；開發人員希望深入研究AMM平台的核心功能；以及想要了解新興技術的投資者和風險投資家。

Miguel Ottina is a Mathematician born and raised in Buenos Aires. He obtained a degree in Mathematics in 2005 and a Ph.D. in Mathematics in 2009, both from the University of Buenos Aires, and worked as a Professor for many years. He has published several peer-reviewed academic articles and has given more than fifteen conference presentations.

In February 2022, he started working in the Web3 industry, ap- plying his mathematical knowledge and expertise to the cutting- edge field of cryptocurrencies and Decentralized Finance, and he has already become an expert in Automated Market Makers. After finding out that the literature on Automated Market Makers is frequently incomplete and not precise, he decided to write this book with Peter and Jesper so as to provide newcomers with a friendly, clear, and thorough explanation of the primary Automated Market Makers, and to offer developers a solid, broad and profound exposition which will allow them to gain a deeper understanding in order to continue building.

Peter Johannes Steffensen is a Mathematician holding a Ph.D. in Mathematics from the University of Aarhus. Since then, he has been working as a software architect in different financial institutions and has also had part-time university jobs. He has worked as a consultant in the Web3 space for over a year and saw there the perfect possibility to apply his mathematical knowledge and experience from the financial industry. His motivation for writing this book is to explain how the leading Automated Market Makers work and to provide a single point of entry for people that look for information on this topic.

Jesper Kristensen has worked in the Web3 space for years in both consulting and full-time capacities. Jesper holds a Ph.D. and two master's degrees in Applied and Engineering Physics from Cornell University. Jesper worked four years at General Electric Research, publishing nine articles, one book chapter, and giving seventeen conference presentations and invited talks. Following this, he did stints in the Tech industry and Finance for three years, and has led a large Web3 Research department. His primary motivation for writing this book is twofold. First, when Jesper was first introduced to the Web3 space, he noticed that a lot of confusion about how Automated Market Makers worked circulated and that multiple people gave incorrect answers around their inner workings --and this book seeks to settle this type of conflicts. Second, he wants to offer a one-stop complete guide to learn about Automated Market Makers.

Miguel Ottina是一位在布宜諾斯艾利斯出生和成長的數學家。他於2005年獲得布宜諾斯艾利斯大學的數學學位，並於2009年獲得數學博士學位，並在多年間擔任教授。他發表了多篇經過同行評審的學術文章，並在十五場以上的會議上發表演講。

在2022年2月，他開始在Web3行業工作，將他的數學知識和專業知識應用於加密貨幣和去中心化金融的前沿領域，並已成為自動化市場製造商的專家。在發現有關自動化市場製造商的文獻經常不完整且不準確後，他決定與Peter和Jesper一起撰寫這本書，以便為新手提供友好、清晰和全面的解釋，並為開發人員提供堅實、廣泛和深入的講解，以幫助他們深入理解並繼續建設。

Peter Johannes Steffensen是一位數學家，擁有奧胡斯大學的數學博士學位。從那時起，他一直在不同的金融機構擔任軟件架構師，並且還有兼職的大學工作。他在Web3領域擔任顧問已經超過一年，並在那裡看到了應用他的數學知識和金融行業經驗的完美機會。他撰寫這本書的動機是解釋領先的自動化市場製造商的工作原理，並為尋找有關此主題的信息的人提供一個統一的入口點。

Jesper Kristensen在Web3領域擔任顧問和全職職位多年。Jesper擁有康奈爾大學應用和工程物理學的博士學位和兩個碩士學位。Jesper在通用電氣研究部門工作了四年，發表了九篇文章、一章書籍和十七場會議演講和邀請演講。此後，他在科技行業和金融行業工作了三年，並領導了一個大型的Web3研究部門。他撰寫這本書的主要動機有兩個。首先，當Jesper首次接觸Web3領域時，他注意到關於自動化市場製造商如何工作的混亂情況很多，並且有多個人對其內部運作給出了不正確的答案-這本書旨在解決這類衝突。其次，他希望提供一本全面的指南，以了解自動化市場製造商。