devcon 7 / amms as managed customized portfolios
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AMMs as Managed, Customized Portfolios
Duration: 00:10:08
Speaker: Theo Diamandis
Type: Lightning Talk
Expertise: Expert
Event: Devcon
Date: Nov 2024
When you provide liquidity to a Uniswap or Balancer pool, what financial product are you actually buying? This talk considers automated market makers from the perspective of liquidity providers. We first mathematically describe the underlying financial derivative that LP positions represent. Then, we show how to use AMMs to construct custom financial derivatives, specified by their payoff function, and discuss implications.
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