The Ultimate Guide To AMMs

[@arpeetrathi]

The web3 community is blessed to have an instructor like you Owen Thurm. I'm getting started as auditor and your videos are something i look upto, to understand the concept really well. Your service is appreciated. Thank you sir

[@jingli9232]

thx Owen for bringing so much value to the community

[@0xOwenThurm]

So glad this could help!

[@mos.martin]

Learning so much from your channel. Thank you for sharing.

[@0xOwenThurm]

So glad this could help!

[@navibongo9354]

Nice video! Very high level overview of things.

[@0xOwenThurm]

Glad to hear it ser!

[@soaphornseuo8630]

It is really detailed and easy to understand

[@0xOwenThurm]

Glad to hear it ser!

[@faroukelalem7531]

Well explained ser :)

[@0xOwenThurm]

Glad this helped!!

[@elku3775]

Thanks man!

[@0xOwenThurm]

Np! Glad this could help!

[@sharonlima8913]

AMMs are self balancing, as the constant product formula incentivises traders to add tokens to the pool when there is a temporary price imbalance. When a token is undervalued, traders buy it from the pool, which increases its price and decreases the price of the other token in the pool. This creates an arbitrage opportunity for traders to sell the other token to the pool and earn a profit, which in turn increases the price of the undervalued token and decreases the price of the overvalued token until the pool reaches a new equilibrium 😮

[@0xOwenThurm]

🧠

[@heysourin]

The best

[@0xOwenThurm]

Glad this could help!!

[@FelipeNovaesRocha]

For those can be confused with the math in the start: (125000/30000) - 5 = 0.8333.

[@0xOwenThurm]

🙏

[@smartcontractt]

but it's equal to -0.8333 ...?

[@X3agleX]

Your hardwork is appreciated 🫡

[@0xOwenThurm]

Glad to hear it ser! More to come🙏

[@FelipeNovaesRocha]

Amazing content!! Have you heard of JIT (Just in Time) Liquidity Provider? Very cool concept.

[@0xOwenThurm]

Absolutely! Eerily reminiscent of a traditional order book 👀

[@rakkitb88]

nice video ser 🫡

[@0xOwenThurm]

Glad you liked it!