Chapter 7The AMM Time Machine: Back to the Future of Finance
Preface
Welcome to the chapter where we dive headfirst into the psychedelic whirlpool of Automated Market Makers (AMMs). If you’ve ever wished to mingle in the same circles as the high priests of finance, like Goldman Sachs or Citadel, but found your invitation was lost in the mail, fret not. In the domain of AMMs, anyone with an internet connection and a dream can rub virtual elbows with these titans, all from the comfort of their own living room, wearing pajamas, no less.
Here, in this financial Narnia, you don’t need a fancy degree or a Wall Street desk to play the game. The AMM platforms have democratized the art of market making, turning every Tom, Dick, and Harry into the potential next big thing in finance. It’s like suddenly discovering you can sing as well as Freddie Mercury but in the world of liquidity provision. Who knew?
But, as with all great tales of adventure and power, there’s a dragon to be faced: the beast known as impermanent loss. It sounds like a condition you’d argue with your gym instructor over, doesn’t it? “Sorry, can’t do more squats today; I’m suffering from a severe case of impermanent loss.” Yet, in the DeFi saga, it’s the sneaky villain lurking in the shadows, ready to snatch away your profits when the prices of your pooled assets decide to throw a party and forget to invite you.
Playing ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
