ZeroSwap: Data-driven Optimal Market Making in DeFi

arXiv:2310.09413v2 Announce Type: replace
Abstract: Automated Market Makers (AMMs) are major centers of matching liquidity supply and demand in Decentralized Finance. Their functioning relies primarily on the presence of liquidity providers (LPs) incentivized to invest their assets into a liquidity pool. However, the prices at which a pooled asset is traded is often more stale than the prices on centralized and more liquid exchanges. This leads to the LPs suffering losses to arbitrage. This problem is addressed by adapting market …

abstract arxiv automated cs.gt cs.lg data data-driven decentralized defi demand finance however liquidity major makers making market pool type