Automated Market Makers in Cryptoeconomic Systems: A Taxonomy and Archetypes

Daniel Kirste, Niclas Kannengie{\ss}er, Ricky Lamberty and Ali Sunyaev

Papers from arXiv.org

Abstract: Designing automated market makers (AMMs) is crucial for decentralized token exchanges in cryptoeconomic systems. At the intersection of software engineering and economics, AMM design is complex and, if done incorrectly, can lead to financial risks and inefficiencies. We developed an AMM taxonomy for systematically comparing AMM designs and propose three AMM archetypes that meet key requirements for token issuance and exchange. This work bridges software engineering and economic perspectives, providing insights to help developers design AMMs tailored to diverse use cases and foster sustainable cryptoeconomic systems.

Date: 2023-09, Revised 2025-03
New Economics Papers: this item is included in nep-des, nep-ger and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://arxiv.org/pdf/2309.12818 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2309.12818

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().