The AMM Edition (Part II) | DeFi Download

Your Trusted Source for 101s, Project Announcements, and Tokenomics Tutorials.

Dear Bankless Nation 🏴,

In the last issue of the DeFi Download, The AMM Edition Part I, we covered the basics of decentralized exchanges and Automated Market Makers. DEXs and AMMs are arguably what make DeFi as we know it possible, allowing for permissionless trading of digital assets and endless yield-earning opportunities.

In this AMM Edition Part II, we’ll go from the 101 to 201, starting off with DEX Aggregators, which enable users to take advantage of search-engine-like functionality to get the best deals on swaps. It’s like Expedia for your crypto journey.

We’ll also learn about AMM Bridges, which enable you to swap tokens across chains, and concentrated liquidity, which is the concept behind Uniswap v3 and Curve v2. Concentrated liquidity enables users to provide liquidity at the range in which there is more market activity. As you’ll see, concentrated liquidity creates increased capital efficiency and a higher rate of return for liquidity providers.

If you’ve always read about MEV but have no idea what Maximal Extractable Value really is or why it’s important, you will after this issue, which goes deep on MEV and Rook, a protocol that aims to give MEV back to the people. And if you’ve heard of Curve but always wondered about Convex, wonder no more. We round out this intermediate-level content with a great breakdown of veTokens vs “valueless governance tokens”, two security scares you should know about (Slope/Solana & Curve), and finish off with a handful of more advanced DeFi tactics.

After reading the AMM Edition Parts I and II, you should have an excellent grasp of many of the pillars of DeFi. Stay tuned to future issues of the DeFi Download for additional ways you can put this new knowledge to use. Thank you for being on this journey with us - onward to the Merge (which we’ll cover in depth during the next three editions of the DeFi Download!).

Contributors: BanklessDAO Writers Guild (Ap0ll0517, Austin Foss, d0wnlore, Elemental, helloashpreet, Hiro Kennelly, Kris, oxdog, siddhearta, Zero Mass, Jake and Stake)

From ‘Castle Ethereum,’ by Perchy

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