Topic
6 posts on this topic.
by Agustin Munoz Gonzalez · 20 min
Decentralized exchanges (DEXes) are the lifeblood of DeFi, but not all DEXes play the same role. Two notable models have emerged in the stablecoin trading arena: Curve - the long-standing stablecoin liquidity pioneer , and Fluid – a newer capital-efficient upstart . Both aim to…
by Agustin Munoz Gonzalez · 6 min
Introduction: From Theory Breakdown to Smart Workarounds In \[Part I], When the Pool Fights Back (Part I): Modeling Liquidity with Transaction Costs we introduced a more realistic mean field game (MFG) model for decentralized trading, where agents interact with a liquidity pool…
by Agustin Munoz Gonzalez · 5 min
Exploring how a simple tweak such as adding transaction costs turns a tractable mean field game into a complex dance of strategic interaction.
by Agustin Munoz Gonzalez · 7 min
When I first encountered mean field games , I was struck by their elegance: a tool to study strategic behavior among many agents without modeling each one individually. At the time, I was also working on quantitative strategies inside liquidity pools . It didn’t take long to…
by Agustin Munoz Gonzalez · 7 min
Introduction Automated Market Makers (AMMs) have revolutionized decentralized finance (DeFi), enabling permissionless, on-chain token swaps without relying on traditional order books. Among the most widely adopted designs is the Constant Product Market Maker (CPMM) , the engine…
by Agustin Munoz Gonzalez · 4 min
What Is Impermanent Loss and Why It Matters In decentralized finance (DeFi), liquidity providers (LPs) are the backbone of automated market makers (AMMs) like Uniswap, Balancer, or Sushi. But being an LP comes with a hidden risk: impermanent loss . Impermanent loss happens when…