WEBVTT Kind: captions Language: en 00:00:00.000 --> 00:00:04.350 align:start position:0% foreign 00:00:04.350 --> 00:00:04.360 align:start position:0% 00:00:04.360 --> 00:00:14.950 align:start position:0% [Music] 00:00:14.950 --> 00:00:14.960 align:start position:0% 00:00:14.960 --> 00:00:17.990 align:start position:0% everybody<00:00:15.960> my<00:00:16.859> name<00:00:16.980> is<00:00:17.039> Joseph<00:00:17.279> I'll<00:00:17.699> be<00:00:17.880> your 00:00:17.990 --> 00:00:18.000 align:start position:0% everybody my name is Joseph I'll be your 00:00:18.000 --> 00:00:19.310 align:start position:0% everybody my name is Joseph I'll be your MC<00:00:18.240> this<00:00:18.660> morning 00:00:19.310 --> 00:00:19.320 align:start position:0% MC this morning 00:00:19.320 --> 00:00:22.790 align:start position:0% MC this morning uh<00:00:20.160> how<00:00:20.520> are<00:00:20.880> you<00:00:21.000> enjoying<00:00:21.240> Defcon<00:00:21.600> so<00:00:21.840> far 00:00:22.790 --> 00:00:22.800 align:start position:0% uh how are you enjoying Defcon so far 00:00:22.800 --> 00:00:26.689 align:start position:0% uh how are you enjoying Defcon so far I<00:00:23.220> guess 00:00:26.689 --> 00:00:26.699 align:start position:0% 00:00:26.699 --> 00:00:28.250 align:start position:0% I guess<00:00:27.119> this<00:00:27.300> is<00:00:27.420> the<00:00:27.539> this<00:00:27.720> is<00:00:27.840> the<00:00:27.960> group<00:00:28.140> of 00:00:28.250 --> 00:00:28.260 align:start position:0% I guess this is the this is the group of 00:00:28.260 --> 00:00:30.650 align:start position:0% I guess this is the this is the group of people<00:00:28.439> that<00:00:28.680> didn't<00:00:28.859> party<00:00:29.160> or<00:00:29.880> did<00:00:30.420> party 00:00:30.650 --> 00:00:30.660 align:start position:0% people that didn't party or did party 00:00:30.660 --> 00:00:32.089 align:start position:0% people that didn't party or did party hard<00:00:30.900> and<00:00:31.080> just<00:00:31.260> didn't<00:00:31.380> go<00:00:31.619> to<00:00:31.679> sleep<00:00:31.859> and 00:00:32.089 --> 00:00:32.099 align:start position:0% hard and just didn't go to sleep and 00:00:32.099 --> 00:00:35.209 align:start position:0% hard and just didn't go to sleep and just<00:00:32.279> continued<00:00:32.880> uh<00:00:33.239> with<00:00:33.420> the<00:00:33.540> drill<00:00:33.780> so 00:00:35.209 --> 00:00:35.219 align:start position:0% just continued uh with the drill so 00:00:35.219 --> 00:00:36.889 align:start position:0% just continued uh with the drill so um I<00:00:35.760> appreciate<00:00:36.059> you<00:00:36.239> for<00:00:36.360> being<00:00:36.540> here<00:00:36.719> in 00:00:36.889 --> 00:00:36.899 align:start position:0% um I appreciate you for being here in 00:00:36.899 --> 00:00:39.410 align:start position:0% um I appreciate you for being here in the<00:00:37.020> morning<00:00:37.140> I<00:00:37.320> know<00:00:37.440> it's<00:00:37.620> tough<00:00:37.860> uh 00:00:39.410 --> 00:00:39.420 align:start position:0% the morning I know it's tough uh 00:00:39.420 --> 00:00:41.090 align:start position:0% the morning I know it's tough uh um<00:00:39.540> but<00:00:40.500> um 00:00:41.090 --> 00:00:41.100 align:start position:0% um but um 00:00:41.100 --> 00:00:42.709 align:start position:0% um but um without<00:00:41.520> further<00:00:41.940> Ado<00:00:42.059> because<00:00:42.360> we<00:00:42.600> are 00:00:42.709 --> 00:00:42.719 align:start position:0% without further Ado because we are 00:00:42.719 --> 00:00:44.990 align:start position:0% without further Ado because we are getting<00:00:42.840> to<00:00:43.020> our<00:00:43.200> time<00:00:43.460> uh<00:00:44.460> we<00:00:44.579> are<00:00:44.760> going<00:00:44.879> to 00:00:44.990 --> 00:00:45.000 align:start position:0% getting to our time uh we are going to 00:00:45.000 --> 00:00:46.790 align:start position:0% getting to our time uh we are going to start<00:00:45.180> with<00:00:45.300> some<00:00:45.420> heavy<00:00:45.780> topics<00:00:46.079> uh<00:00:46.500> right<00:00:46.620> in 00:00:46.790 --> 00:00:46.800 align:start position:0% start with some heavy topics uh right in 00:00:46.800 --> 00:00:49.910 align:start position:0% start with some heavy topics uh right in the<00:00:46.920> morning<00:00:47.040> uh<00:00:47.879> Matt's<00:00:48.660> dibel<00:00:49.079> the<00:00:49.559> research 00:00:49.910 --> 00:00:49.920 align:start position:0% the morning uh Matt's dibel the research 00:00:49.920 --> 00:00:51.950 align:start position:0% the morning uh Matt's dibel the research and<00:00:50.100> product<00:00:50.219> lead<00:00:50.520> at<00:00:51.120> Otis<00:00:51.360> is<00:00:51.660> going<00:00:51.780> to 00:00:51.950 --> 00:00:51.960 align:start position:0% and product lead at Otis is going to 00:00:51.960 --> 00:00:54.650 align:start position:0% and product lead at Otis is going to present<00:00:52.320> his<00:00:52.559> talk<00:00:52.860> about<00:00:53.100> an<00:00:54.000> overview<00:00:54.360> of 00:00:54.650 --> 00:00:54.660 align:start position:0% present his talk about an overview of 00:00:54.660 --> 00:00:57.229 align:start position:0% present his talk about an overview of automated<00:00:55.140> Market<00:00:55.500> making<00:00:55.800> mechanisms<00:00:56.760> so 00:00:57.229 --> 00:00:57.239 align:start position:0% automated Market making mechanisms so 00:00:57.239 --> 00:00:59.410 align:start position:0% automated Market making mechanisms so please<00:00:57.480> put<00:00:57.660> your<00:00:57.780> hands<00:00:58.020> together<00:00:58.140> for<00:00:58.440> Matt 00:00:59.410 --> 00:00:59.420 align:start position:0% please put your hands together for Matt 00:00:59.420 --> 00:01:06.670 align:start position:0% please put your hands together for Matt [Applause] 00:01:06.670 --> 00:01:06.680 align:start position:0% 00:01:06.680 --> 00:01:09.649 align:start position:0% all<00:01:07.680> right<00:01:07.799> hey<00:01:08.280> everyone 00:01:09.649 --> 00:01:09.659 align:start position:0% all right hey everyone 00:01:09.659 --> 00:01:11.030 align:start position:0% all right hey everyone um 00:01:11.030 --> 00:01:11.040 align:start position:0% um 00:01:11.040 --> 00:01:12.230 align:start position:0% um so 00:01:12.230 --> 00:01:12.240 align:start position:0% so 00:01:12.240 --> 00:01:15.289 align:start position:0% so otos<00:01:12.479> is<00:01:12.900> a<00:01:13.260> DEX<00:01:13.799> aggregator 00:01:15.289 --> 00:01:15.299 align:start position:0% otos is a DEX aggregator 00:01:15.299 --> 00:01:16.070 align:start position:0% otos is a DEX aggregator um 00:01:16.070 --> 00:01:16.080 align:start position:0% um 00:01:16.080 --> 00:01:18.590 align:start position:0% um and<00:01:16.680> so<00:01:16.799> while<00:01:17.040> building<00:01:17.280> it<00:01:17.520> I've<00:01:17.820> had<00:01:18.240> the 00:01:18.590 --> 00:01:18.600 align:start position:0% and so while building it I've had the 00:01:18.600 --> 00:01:21.170 align:start position:0% and so while building it I've had the unique<00:01:18.900> opportunity<00:01:19.380> to<00:01:19.920> really 00:01:21.170 --> 00:01:21.180 align:start position:0% unique opportunity to really 00:01:21.180 --> 00:01:21.890 align:start position:0% unique opportunity to really um 00:01:21.890 --> 00:01:21.900 align:start position:0% um 00:01:21.900 --> 00:01:23.450 align:start position:0% um do<00:01:22.259> a<00:01:22.439> deep<00:01:22.560> dive<00:01:22.799> into<00:01:22.979> the<00:01:23.280> different 00:01:23.450 --> 00:01:23.460 align:start position:0% do a deep dive into the different 00:01:23.460 --> 00:01:26.149 align:start position:0% do a deep dive into the different automated<00:01:24.180> Market<00:01:24.420> maker<00:01:24.960> mechanisms<00:01:25.680> that 00:01:26.149 --> 00:01:26.159 align:start position:0% automated Market maker mechanisms that 00:01:26.159 --> 00:01:30.170 align:start position:0% automated Market maker mechanisms that control<00:01:26.700> billions<00:01:27.299> in<00:01:27.720> D5<00:01:28.020> tvl<00:01:28.619> every<00:01:28.920> day<00:01:29.180> so 00:01:30.170 --> 00:01:30.180 align:start position:0% control billions in D5 tvl every day so 00:01:30.180 --> 00:01:33.310 align:start position:0% control billions in D5 tvl every day so the<00:01:30.840> aim<00:01:31.080> of<00:01:31.140> this<00:01:31.320> talk<00:01:31.500> is<00:01:31.860> going<00:01:31.979> to<00:01:32.100> be<00:01:32.159> to 00:01:33.310 --> 00:01:33.320 align:start position:0% the aim of this talk is going to be to 00:01:33.320 --> 00:01:35.390 align:start position:0% the aim of this talk is going to be to try<00:01:34.320> to<00:01:34.439> cover<00:01:34.619> as<00:01:34.799> many<00:01:34.979> of<00:01:35.100> these<00:01:35.280> as 00:01:35.390 --> 00:01:35.400 align:start position:0% try to cover as many of these as 00:01:35.400 --> 00:01:37.910 align:start position:0% try to cover as many of these as possible<00:01:35.759> uh<00:01:36.659> primarily<00:01:37.079> the<00:01:37.259> ones<00:01:37.560> that 00:01:37.910 --> 00:01:37.920 align:start position:0% possible uh primarily the ones that 00:01:37.920 --> 00:01:41.030 align:start position:0% possible uh primarily the ones that currently<00:01:38.340> control<00:01:38.900> a<00:01:39.900> large<00:01:40.140> amount<00:01:40.320> of<00:01:40.500> tvl 00:01:41.030 --> 00:01:41.040 align:start position:0% currently control a large amount of tvl 00:01:41.040 --> 00:01:42.590 align:start position:0% currently control a large amount of tvl so<00:01:41.640> it's<00:01:41.759> not<00:01:41.939> going<00:01:42.060> to<00:01:42.180> be<00:01:42.240> completely 00:01:42.590 --> 00:01:42.600 align:start position:0% so it's not going to be completely 00:01:42.600 --> 00:01:45.530 align:start position:0% so it's not going to be completely exhaustive<00:01:43.200> but<00:01:43.500> hopefully<00:01:43.799> it's<00:01:44.180> uh<00:01:45.180> close 00:01:45.530 --> 00:01:45.540 align:start position:0% exhaustive but hopefully it's uh close 00:01:45.540 --> 00:01:48.469 align:start position:0% exhaustive but hopefully it's uh close as<00:01:45.900> close<00:01:46.020> as<00:01:46.200> possible<00:01:46.500> in<00:01:46.680> 25<00:01:46.860> minutes 00:01:48.469 --> 00:01:48.479 align:start position:0% as close as possible in 25 minutes 00:01:48.479 --> 00:01:49.130 align:start position:0% as close as possible in 25 minutes um 00:01:49.130 --> 00:01:49.140 align:start position:0% um 00:01:49.140 --> 00:01:50.630 align:start position:0% um and<00:01:49.619> then<00:01:49.740> we're<00:01:49.920> going<00:01:50.040> to<00:01:50.100> tie<00:01:50.280> that<00:01:50.460> back 00:01:50.630 --> 00:01:50.640 align:start position:0% and then we're going to tie that back 00:01:50.640 --> 00:01:54.050 align:start position:0% and then we're going to tie that back into<00:01:51.119> Dex<00:01:51.960> aggregation<00:01:52.500> why<00:01:52.920> it's<00:01:53.100> needed<00:01:53.460> and 00:01:54.050 --> 00:01:54.060 align:start position:0% into Dex aggregation why it's needed and 00:01:54.060 --> 00:01:57.710 align:start position:0% into Dex aggregation why it's needed and what<00:01:54.299> it's<00:01:54.479> for 00:01:57.710 --> 00:01:57.720 align:start position:0% 00:01:57.720 --> 00:02:01.249 align:start position:0% so<00:01:58.200> to<00:01:58.619> start<00:01:58.740> off<00:01:58.920> I<00:01:59.280> want<00:01:59.399> to<00:01:59.579> briefly<00:02:00.000> cover 00:02:01.249 --> 00:02:01.259 align:start position:0% so to start off I want to briefly cover 00:02:01.259 --> 00:02:03.469 align:start position:0% so to start off I want to briefly cover um some<00:02:01.799> of<00:02:01.860> the<00:02:01.979> basic<00:02:02.340> principles 00:02:03.469 --> 00:02:03.479 align:start position:0% um some of the basic principles 00:02:03.479 --> 00:02:05.170 align:start position:0% um some of the basic principles that 00:02:05.170 --> 00:02:05.180 align:start position:0% that 00:02:05.180 --> 00:02:07.730 align:start position:0% that we<00:02:06.180> can<00:02:06.299> think<00:02:06.420> about<00:02:06.600> well<00:02:06.960> we're<00:02:07.320> going<00:02:07.560> over 00:02:07.730 --> 00:02:07.740 align:start position:0% we can think about well we're going over 00:02:07.740 --> 00:02:10.550 align:start position:0% we can think about well we're going over these<00:02:08.099> many<00:02:08.220> different<00:02:08.459> mechanisms<00:02:09.179> so<00:02:09.840> first 00:02:10.550 --> 00:02:10.560 align:start position:0% these many different mechanisms so first 00:02:10.560 --> 00:02:12.770 align:start position:0% these many different mechanisms so first I<00:02:10.860> think<00:02:10.979> it's<00:02:11.099> useful<00:02:11.459> to<00:02:12.060> clearly<00:02:12.540> Define 00:02:12.770 --> 00:02:12.780 align:start position:0% I think it's useful to clearly Define 00:02:12.780 --> 00:02:14.589 align:start position:0% I think it's useful to clearly Define what<00:02:13.200> we're<00:02:13.319> actually<00:02:13.500> trying<00:02:13.739> to<00:02:13.920> do 00:02:14.589 --> 00:02:14.599 align:start position:0% what we're actually trying to do 00:02:14.599 --> 00:02:19.309 align:start position:0% what we're actually trying to do with<00:02:15.599> these<00:02:15.780> Market<00:02:15.959> making<00:02:16.200> mechanisms<00:02:16.980> so 00:02:19.309 --> 00:02:19.319 align:start position:0% with these Market making mechanisms so 00:02:19.319 --> 00:02:21.470 align:start position:0% with these Market making mechanisms so we<00:02:19.800> can<00:02:19.920> start<00:02:20.040> off<00:02:20.280> by<00:02:20.640> clearly<00:02:21.000> defining 00:02:21.470 --> 00:02:21.480 align:start position:0% we can start off by clearly defining 00:02:21.480 --> 00:02:24.410 align:start position:0% we can start off by clearly defining what<00:02:21.900> a<00:02:22.020> market<00:02:22.200> maker<00:02:22.680> is<00:02:22.980> so<00:02:23.459> a<00:02:23.760> market<00:02:23.819> maker 00:02:24.410 --> 00:02:24.420 align:start position:0% what a market maker is so a market maker 00:02:24.420 --> 00:02:27.229 align:start position:0% what a market maker is so a market maker has<00:02:25.260> a<00:02:25.560> portfolio<00:02:25.980> of<00:02:26.160> assets<00:02:26.520> and<00:02:27.060> they're 00:02:27.229 --> 00:02:27.239 align:start position:0% has a portfolio of assets and they're 00:02:27.239 --> 00:02:31.369 align:start position:0% has a portfolio of assets and they're trying<00:02:27.420> to<00:02:27.540> earn<00:02:27.900> yield<00:02:28.560> on<00:02:28.860> that<00:02:28.980> portfolio 00:02:31.369 --> 00:02:31.379 align:start position:0% trying to earn yield on that portfolio 00:02:31.379 --> 00:02:33.589 align:start position:0% trying to earn yield on that portfolio um<00:02:31.500> and<00:02:31.800> they<00:02:31.920> do<00:02:32.099> that<00:02:32.280> by<00:02:32.819> allowing<00:02:33.360> people 00:02:33.589 --> 00:02:33.599 align:start position:0% um and they do that by allowing people 00:02:33.599 --> 00:02:36.650 align:start position:0% um and they do that by allowing people to<00:02:34.020> trade<00:02:34.319> through<00:02:34.560> it<00:02:35.160> and<00:02:35.819> so<00:02:36.120> essentially 00:02:36.650 --> 00:02:36.660 align:start position:0% to trade through it and so essentially 00:02:36.660 --> 00:02:41.030 align:start position:0% to trade through it and so essentially what<00:02:36.900> happens<00:02:37.080> is<00:02:37.940> uh<00:02:38.940> they<00:02:39.480> offer<00:02:39.840> to<00:02:40.379> sell<00:02:40.800> an 00:02:41.030 --> 00:02:41.040 align:start position:0% what happens is uh they offer to sell an 00:02:41.040 --> 00:02:43.490 align:start position:0% what happens is uh they offer to sell an asset<00:02:41.400> at<00:02:41.879> a<00:02:42.060> slightly<00:02:42.300> higher<00:02:42.660> value<00:02:42.840> then 00:02:43.490 --> 00:02:43.500 align:start position:0% asset at a slightly higher value then 00:02:43.500 --> 00:02:45.470 align:start position:0% asset at a slightly higher value then they<00:02:43.739> will<00:02:43.860> buy<00:02:43.980> it<00:02:44.220> back<00:02:44.400> and<00:02:44.940> that<00:02:45.120> creates 00:02:45.470 --> 00:02:45.480 align:start position:0% they will buy it back and that creates 00:02:45.480 --> 00:02:47.390 align:start position:0% they will buy it back and that creates this<00:02:45.959> spread 00:02:47.390 --> 00:02:47.400 align:start position:0% this spread 00:02:47.400 --> 00:02:49.550 align:start position:0% this spread um<00:02:47.519> that<00:02:47.760> serves<00:02:48.000> as<00:02:48.180> Revenue<00:02:48.660> that<00:02:49.080> they<00:02:49.200> earn 00:02:49.550 --> 00:02:49.560 align:start position:0% um that serves as Revenue that they earn 00:02:49.560 --> 00:02:51.050 align:start position:0% um that serves as Revenue that they earn on 00:02:51.050 --> 00:02:51.060 align:start position:0% on 00:02:51.060 --> 00:02:52.610 align:start position:0% on um<00:02:51.120> the<00:02:51.780> volume<00:02:51.900> that<00:02:52.140> goes<00:02:52.379> through<00:02:52.440> their 00:02:52.610 --> 00:02:52.620 align:start position:0% um the volume that goes through their 00:02:52.620 --> 00:02:55.430 align:start position:0% um the volume that goes through their platform<00:02:53.519> now<00:02:54.060> the<00:02:54.420> catch<00:02:54.720> is<00:02:54.840> that<00:02:55.140> this 00:02:55.430 --> 00:02:55.440 align:start position:0% platform now the catch is that this 00:02:55.440 --> 00:02:59.270 align:start position:0% platform now the catch is that this revenue<00:02:55.800> is<00:02:56.160> not<00:02:56.459> risk-free<00:02:57.300> right<00:02:58.200> uh<00:02:59.040> people 00:02:59.270 --> 00:02:59.280 align:start position:0% revenue is not risk-free right uh people 00:02:59.280 --> 00:03:02.270 align:start position:0% revenue is not risk-free right uh people are<00:02:59.519> when<00:03:00.360> trading<00:03:00.959> is<00:03:01.140> happening<00:03:01.560> we're 00:03:02.270 --> 00:03:02.280 align:start position:0% are when trading is happening we're 00:03:02.280 --> 00:03:04.610 align:start position:0% are when trading is happening we're actually<00:03:02.519> changing<00:03:03.060> the<00:03:03.480> composition<00:03:03.959> of<00:03:04.440> the 00:03:04.610 --> 00:03:04.620 align:start position:0% actually changing the composition of the 00:03:04.620 --> 00:03:06.290 align:start position:0% actually changing the composition of the portfolio 00:03:06.290 --> 00:03:06.300 align:start position:0% portfolio 00:03:06.300 --> 00:03:08.630 align:start position:0% portfolio um<00:03:06.720> and<00:03:07.260> this<00:03:07.440> also<00:03:07.680> leads<00:03:08.040> to<00:03:08.099> a<00:03:08.280> change<00:03:08.459> in 00:03:08.630 --> 00:03:08.640 align:start position:0% um and this also leads to a change in 00:03:08.640 --> 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position:0% portfolio as a result of the trading uh<00:03:18.780> outweighs<00:03:19.319> the<00:03:19.440> revenue<00:03:19.680> then<00:03:20.040> you're<00:03:20.280> now 00:03:20.509 --> 00:03:20.519 align:start position:0% uh outweighs the revenue then you're now 00:03:20.519 --> 00:03:22.190 align:start position:0% uh outweighs the revenue then you're now losing<00:03:20.879> money<00:03:21.120> and<00:03:21.540> you're<00:03:21.780> not<00:03:21.959> actually 00:03:22.190 --> 00:03:22.200 align:start position:0% losing money and you're not actually 00:03:22.200 --> 00:03:25.190 align:start position:0% losing money and you're not actually earning<00:03:22.739> any<00:03:22.860> yield<00:03:23.159> and<00:03:23.700> so<00:03:24.000> uh<00:03:24.780> we<00:03:25.080> really 00:03:25.190 --> 00:03:25.200 align:start position:0% earning any yield and so uh we really 00:03:25.200 --> 00:03:28.850 align:start position:0% earning any yield and so uh we really need<00:03:25.440> to<00:03:25.620> do<00:03:25.800> a<00:03:26.040> good<00:03:26.099> job<00:03:26.280> designing<00:03:27.000> the<00:03:27.480> uh 00:03:28.850 --> 00:03:28.860 align:start position:0% need to do a good job designing the uh 00:03:28.860 --> 00:03:30.470 align:start position:0% need to do a good job designing the uh the<00:03:29.220> strategy<00:03:29.640> and<00:03:29.879> how<00:03:30.060> we're<00:03:30.239> actually 00:03:30.470 --> 00:03:30.480 align:start position:0% the strategy and how we're actually 00:03:30.480 --> 00:03:35.330 align:start position:0% the strategy and how we're actually pricing<00:03:31.080> and<00:03:31.620> allowing<00:03:31.920> people<00:03:32.159> to<00:03:32.640> trade 00:03:35.330 --> 00:03:35.340 align:start position:0% 00:03:35.340 --> 00:03:38.330 align:start position:0% so<00:03:36.180> with<00:03:36.540> that<00:03:36.720> objective<00:03:37.140> in<00:03:37.319> mind<00:03:37.560> we<00:03:38.220> can 00:03:38.330 --> 00:03:38.340 align:start position:0% so with that objective in mind we can 00:03:38.340 --> 00:03:41.390 align:start position:0% so with that objective in mind we can now<00:03:38.519> think<00:03:38.819> about<00:03:39.080> what<00:03:40.080> tools<00:03:40.440> we<00:03:40.560> can<00:03:40.739> use<00:03:40.920> to 00:03:41.390 --> 00:03:41.400 align:start position:0% now think about what tools we can use to 00:03:41.400 --> 00:03:42.949 align:start position:0% now think about what tools we can use to actually 00:03:42.949 --> 00:03:42.959 align:start position:0% actually 00:03:42.959 --> 00:03:43.910 align:start position:0% actually um 00:03:43.910 --> 00:03:43.920 align:start position:0% um 00:03:43.920 --> 00:03:47.089 align:start position:0% um decide<00:03:44.760> on<00:03:45.060> the<00:03:45.180> pricing<00:03:45.540> right<00:03:46.019> so 00:03:47.089 --> 00:03:47.099 align:start position:0% decide on the pricing right so 00:03:47.099 --> 00:03:49.070 align:start position:0% decide on the pricing right so there's<00:03:47.640> many<00:03:47.879> different<00:03:48.120> types<00:03:48.780> and 00:03:49.070 --> 00:03:49.080 align:start position:0% there's many different types and 00:03:49.080 --> 00:03:51.589 align:start position:0% there's many different types and strategies<00:03:49.620> of<00:03:49.860> course<00:03:49.980> but<00:03:50.519> we<00:03:51.060> can<00:03:51.239> sort<00:03:51.480> of 00:03:51.589 --> 00:03:51.599 align:start position:0% strategies of course but we can sort of 00:03:51.599 --> 00:03:55.369 align:start position:0% strategies of course but we can sort of simplify<00:03:52.260> it<00:03:52.440> down<00:03:52.620> to<00:03:52.799> two<00:03:53.099> basic<00:03:53.580> paradigms 00:03:55.369 --> 00:03:55.379 align:start position:0% simplify it down to two basic paradigms 00:03:55.379 --> 00:03:57.770 align:start position:0% simplify it down to two basic paradigms so<00:03:55.860> the<00:03:56.099> first<00:03:56.220> of<00:03:56.400> which<00:03:56.580> is<00:03:57.120> uh<00:03:57.599> price 00:03:57.770 --> 00:03:57.780 align:start position:0% so the first of which is uh price 00:03:57.780 --> 00:04:01.490 align:start position:0% so the first of which is uh price Discovery<00:03:58.440> so<00:03:59.220> this<00:04:00.060> is<00:04:00.180> essentially 00:04:01.490 --> 00:04:01.500 align:start position:0% Discovery so this is essentially 00:04:01.500 --> 00:04:04.009 align:start position:0% Discovery so this is essentially reacting<00:04:02.340> to 00:04:04.009 --> 00:04:04.019 align:start position:0% reacting to 00:04:04.019 --> 00:04:06.770 align:start position:0% reacting to um what's<00:04:04.739> happening<00:04:05.040> in<00:04:05.220> the<00:04:05.340> market<00:04:05.459> so 00:04:06.770 --> 00:04:06.780 align:start position:0% um what's happening in the market so 00:04:06.780 --> 00:04:09.050 align:start position:0% um what's happening in the market so if<00:04:07.140> we<00:04:07.200> think<00:04:07.319> of<00:04:07.440> a<00:04:07.620> simple<00:04:07.739> example<00:04:08.220> if<00:04:08.700> at 00:04:09.050 --> 00:04:09.060 align:start position:0% if we think of a simple example if at 00:04:09.060 --> 00:04:10.670 align:start position:0% if we think of a simple example if at the<00:04:09.180> current<00:04:09.299> price<00:04:09.599> lots<00:04:10.140> of<00:04:10.200> people<00:04:10.319> are 00:04:10.670 --> 00:04:10.680 align:start position:0% the current price lots of people are 00:04:10.680 --> 00:04:13.490 align:start position:0% the current price lots of people are buying<00:04:11.159> that<00:04:12.120> means<00:04:12.480> the<00:04:12.780> price<00:04:12.959> is<00:04:13.200> probably 00:04:13.490 --> 00:04:13.500 align:start position:0% buying that means the price is probably 00:04:13.500 --> 00:04:15.890 align:start position:0% buying that means the price is probably a<00:04:14.280> bit<00:04:14.400> too<00:04:14.580> low<00:04:14.760> and<00:04:15.120> you<00:04:15.180> should<00:04:15.299> raise<00:04:15.480> it<00:04:15.720> up 00:04:15.890 --> 00:04:15.900 align:start position:0% a bit too low and you should raise it up 00:04:15.900 --> 00:04:18.770 align:start position:0% a bit too low and you should raise it up and<00:04:16.620> so<00:04:16.799> by<00:04:17.220> reacting<00:04:17.760> to<00:04:18.000> how<00:04:18.239> people<00:04:18.419> are 00:04:18.770 --> 00:04:18.780 align:start position:0% and so by reacting to how people are 00:04:18.780 --> 00:04:21.349 align:start position:0% and so by reacting to how people are interacting<00:04:19.260> with<00:04:19.500> the<00:04:19.680> prices<00:04:19.799> you<00:04:20.220> set<00:04:20.400> you 00:04:21.349 --> 00:04:21.359 align:start position:0% interacting with the prices you set you 00:04:21.359 --> 00:04:22.670 align:start position:0% interacting with the prices you set you can<00:04:21.540> sort<00:04:21.900> of 00:04:22.670 --> 00:04:22.680 align:start position:0% can sort of 00:04:22.680 --> 00:04:25.010 align:start position:0% can sort of follow<00:04:23.280> around<00:04:23.580> the<00:04:23.940> market<00:04:24.060> price<00:04:24.479> and 00:04:25.010 --> 00:04:25.020 align:start position:0% follow around the market price and 00:04:25.020 --> 00:04:26.629 align:start position:0% follow around the market price and discover<00:04:25.259> what<00:04:25.860> the<00:04:25.979> market<00:04:26.100> thinks<00:04:26.520> the 00:04:26.629 --> 00:04:26.639 align:start position:0% discover what the market thinks the 00:04:26.639 --> 00:04:29.330 align:start position:0% discover what the market thinks the price<00:04:26.820> is<00:04:27.620> which<00:04:28.620> is<00:04:28.740> a<00:04:28.919> very<00:04:29.040> powerful 00:04:29.330 --> 00:04:29.340 align:start position:0% price is which is a very powerful 00:04:29.340 --> 00:04:31.730 align:start position:0% price is which is a very powerful mechanism<00:04:29.880> but<00:04:30.360> of<00:04:31.020> course<00:04:31.139> if<00:04:31.560> you're 00:04:31.730 --> 00:04:31.740 align:start position:0% mechanism but of course if you're 00:04:31.740 --> 00:04:33.710 align:start position:0% mechanism but of course if you're following<00:04:32.220> around<00:04:32.520> what<00:04:33.180> the<00:04:33.300> actual<00:04:33.540> market 00:04:33.710 --> 00:04:33.720 align:start position:0% following around what the actual market 00:04:33.720 --> 00:04:35.629 align:start position:0% following around what the actual market price<00:04:34.020> is 00:04:35.629 --> 00:04:35.639 align:start position:0% price is 00:04:35.639 --> 00:04:38.590 align:start position:0% price is um<00:04:36.120> you're<00:04:36.600> not<00:04:36.780> actually<00:04:37.020> really 00:04:38.590 --> 00:04:38.600 align:start position:0% um you're not actually really 00:04:38.600 --> 00:04:41.210 align:start position:0% um you're not actually really providing<00:04:39.600> the<00:04:40.139> best<00:04:40.259> price<00:04:40.500> at<00:04:40.740> any<00:04:40.919> given 00:04:41.210 --> 00:04:41.220 align:start position:0% providing the best price at any given 00:04:41.220 --> 00:04:42.290 align:start position:0% providing the best price at any given time<00:04:41.340> because<00:04:41.580> you're<00:04:41.759> always<00:04:41.880> trailing 00:04:42.290 --> 00:04:42.300 align:start position:0% time because you're always trailing 00:04:42.300 --> 00:04:45.290 align:start position:0% time because you're always trailing behind<00:04:42.720> and<00:04:43.620> so<00:04:43.979> ideally<00:04:44.520> what<00:04:44.820> we'd<00:04:45.000> like<00:04:45.180> to 00:04:45.290 --> 00:04:45.300 align:start position:0% behind and so ideally what we'd like to 00:04:45.300 --> 00:04:49.070 align:start position:0% behind and so ideally what we'd like to do<00:04:45.479> is<00:04:45.840> just<00:04:46.259> be<00:04:46.919> providing<00:04:47.460> the<00:04:48.060> price<00:04:48.360> that 00:04:49.070 --> 00:04:49.080 align:start position:0% do is just be providing the price that 00:04:49.080 --> 00:04:50.990 align:start position:0% do is just be providing the price that people<00:04:49.320> actually<00:04:49.919> want<00:04:50.220> to<00:04:50.340> buy<00:04:50.460> and<00:04:50.639> sell<00:04:50.820> at 00:04:50.990 --> 00:04:51.000 align:start position:0% people actually want to buy and sell at 00:04:51.000 --> 00:04:54.110 align:start position:0% people actually want to buy and sell at right<00:04:51.419> we<00:04:51.900> want<00:04:52.020> the<00:04:52.199> real<00:04:52.380> market<00:04:52.620> price<00:04:53.120> and 00:04:54.110 --> 00:04:54.120 align:start position:0% right we want the real market price and 00:04:54.120 --> 00:04:56.510 align:start position:0% right we want the real market price and so<00:04:54.360> we<00:04:54.900> can<00:04:55.020> try<00:04:55.259> to<00:04:55.500> approximate<00:04:56.040> that<00:04:56.220> by 00:04:56.510 --> 00:04:56.520 align:start position:0% so we can try to approximate that by 00:04:56.520 --> 00:04:59.749 align:start position:0% so we can try to approximate that by leveraging<00:04:57.000> Price<00:04:57.360> oracles<00:04:58.080> so<00:04:59.040> trying<00:04:59.460> to 00:04:59.749 --> 00:04:59.759 align:start position:0% leveraging Price oracles so trying to 00:04:59.759 --> 00:05:02.930 align:start position:0% leveraging Price oracles so trying to leverage<00:05:00.060> some<00:05:00.720> external<00:05:01.259> knowledge 00:05:02.930 --> 00:05:02.940 align:start position:0% leverage some external knowledge 00:05:02.940 --> 00:05:04.969 align:start position:0% leverage some external knowledge um<00:05:03.479> to<00:05:03.960> decide<00:05:04.259> on<00:05:04.380> the<00:05:04.560> price<00:05:04.680> without 00:05:04.969 --> 00:05:04.979 align:start position:0% um to decide on the price without 00:05:04.979 --> 00:05:07.790 align:start position:0% um to decide on the price without actually<00:05:05.280> having<00:05:05.639> to<00:05:05.940> discover<00:05:06.180> it<00:05:06.540> ourselves 00:05:07.790 --> 00:05:07.800 align:start position:0% actually having to discover it ourselves 00:05:07.800 --> 00:05:10.189 align:start position:0% actually having to discover it ourselves and<00:05:08.460> so<00:05:08.699> this<00:05:09.120> can<00:05:09.240> be<00:05:09.360> extremely<00:05:09.720> powerful 00:05:10.189 --> 00:05:10.199 align:start position:0% and so this can be extremely powerful 00:05:10.199 --> 00:05:13.430 align:start position:0% and so this can be extremely powerful because<00:05:11.000> you<00:05:12.000> can<00:05:12.180> really<00:05:12.660> then<00:05:12.900> concentrate 00:05:13.430 --> 00:05:13.440 align:start position:0% because you can really then concentrate 00:05:13.440 --> 00:05:16.490 align:start position:0% because you can really then concentrate your<00:05:13.680> liquidity<00:05:14.360> and<00:05:15.360> uh 00:05:16.490 --> 00:05:16.500 align:start position:0% your liquidity and uh 00:05:16.500 --> 00:05:18.830 align:start position:0% your liquidity and uh general<00:05:16.860> pricing<00:05:17.400> strategy<00:05:17.759> around<00:05:18.180> what 00:05:18.830 --> 00:05:18.840 align:start position:0% general pricing strategy around what 00:05:18.840 --> 00:05:21.290 align:start position:0% general pricing strategy around what people<00:05:18.960> actually<00:05:19.320> value<00:05:19.560> an<00:05:19.919> asset<00:05:20.280> at 00:05:21.290 --> 00:05:21.300 align:start position:0% people actually value an asset at 00:05:21.300 --> 00:05:23.810 align:start position:0% people actually value an asset at but<00:05:21.720> it<00:05:22.020> can<00:05:22.139> also<00:05:22.380> be<00:05:22.560> very<00:05:23.160> detrimental 00:05:23.810 --> 00:05:23.820 align:start position:0% but it can also be very detrimental 00:05:23.820 --> 00:05:25.790 align:start position:0% but it can also be very detrimental because<00:05:24.300> if<00:05:24.660> you're<00:05:24.780> setting<00:05:25.199> if<00:05:25.500> your<00:05:25.620> price 00:05:25.790 --> 00:05:25.800 align:start position:0% because if you're setting if your price 00:05:25.800 --> 00:05:28.370 align:start position:0% because if you're setting if your price Oracle<00:05:26.220> is<00:05:26.400> wrong<00:05:26.639> well<00:05:27.419> then<00:05:27.660> you<00:05:27.900> have<00:05:28.080> the 00:05:28.370 --> 00:05:28.380 align:start position:0% Oracle is wrong well then you have the 00:05:28.380 --> 00:05:30.290 align:start position:0% Oracle is wrong well then you have the same<00:05:28.500> problem<00:05:28.740> with<00:05:28.979> price<00:05:29.160> Discovery<00:05:29.759> except 00:05:30.290 --> 00:05:30.300 align:start position:0% same problem with price Discovery except 00:05:30.300 --> 00:05:34.129 align:start position:0% same problem with price Discovery except quite<00:05:30.900> a<00:05:31.080> bit<00:05:31.199> worse<00:05:31.560> potentially<00:05:32.100> right<00:05:32.639> so 00:05:34.129 --> 00:05:34.139 align:start position:0% quite a bit worse potentially right so 00:05:34.139 --> 00:05:35.749 align:start position:0% quite a bit worse potentially right so real<00:05:34.620> quick<00:05:34.800> to<00:05:34.979> give<00:05:35.160> some<00:05:35.280> concrete 00:05:35.749 --> 00:05:35.759 align:start position:0% real quick to give some concrete 00:05:35.759 --> 00:05:38.810 align:start position:0% real quick to give some concrete examples<00:05:36.120> uh<00:05:37.020> one<00:05:37.800> thing<00:05:37.919> we<00:05:38.100> can<00:05:38.220> Leverage<00:05:38.460> is 00:05:38.810 --> 00:05:38.820 align:start position:0% examples uh one thing we can Leverage is 00:05:38.820 --> 00:05:42.830 align:start position:0% examples uh one thing we can Leverage is the<00:05:39.000> pegged<00:05:39.419> value<00:05:39.660> of<00:05:40.560> uh<00:05:40.979> the<00:05:41.160> asset<00:05:41.520> so<00:05:42.060> if 00:05:42.830 --> 00:05:42.840 align:start position:0% the pegged value of uh the asset so if 00:05:42.840 --> 00:05:45.170 align:start position:0% the pegged value of uh the asset so if you<00:05:42.960> have<00:05:43.080> two<00:05:43.320> stable<00:05:43.620> coins<00:05:43.919> usdc<00:05:44.460> and<00:05:44.580> usdt 00:05:45.170 --> 00:05:45.180 align:start position:0% you have two stable coins usdc and usdt 00:05:45.180 --> 00:05:47.270 align:start position:0% you have two stable coins usdc and usdt they're<00:05:45.840> both<00:05:46.020> worth<00:05:46.199> a<00:05:46.500> dollar<00:05:46.620> and<00:05:47.100> they 00:05:47.270 --> 00:05:47.280 align:start position:0% they're both worth a dollar and they 00:05:47.280 --> 00:05:50.330 align:start position:0% they're both worth a dollar and they should<00:05:47.460> be<00:05:47.580> exchanged<00:05:48.300> one<00:05:48.840> to<00:05:49.020> one<00:05:49.259> right<00:05:49.740> and 00:05:50.330 --> 00:05:50.340 align:start position:0% should be exchanged one to one right and 00:05:50.340 --> 00:05:52.550 align:start position:0% should be exchanged one to one right and we<00:05:50.520> can<00:05:50.639> leverage<00:05:50.940> that<00:05:51.300> knowledge<00:05:51.660> as<00:05:52.259> sort 00:05:52.550 --> 00:05:52.560 align:start position:0% we can leverage that knowledge as sort 00:05:52.560 --> 00:05:56.270 align:start position:0% we can leverage that knowledge as sort of<00:05:52.740> an<00:05:53.280> Oracle<00:05:53.699> and<00:05:54.300> use<00:05:54.720> that<00:05:54.960> to<00:05:55.199> inform<00:05:55.560> our 00:05:56.270 --> 00:05:56.280 align:start position:0% of an Oracle and use that to inform our 00:05:56.280 --> 00:05:58.790 align:start position:0% of an Oracle and use that to inform our pricing<00:05:56.639> and<00:05:56.880> Market<00:05:57.060> making<00:05:57.300> decisions 00:05:58.790 --> 00:05:58.800 align:start position:0% pricing and Market making decisions 00:05:58.800 --> 00:06:01.129 align:start position:0% pricing and Market making decisions some<00:05:59.639> other<00:05:59.820> examples<00:06:00.180> are<00:06:00.539> chain<00:06:00.960> link 00:06:01.129 --> 00:06:01.139 align:start position:0% some other examples are chain link 00:06:01.139 --> 00:06:04.129 align:start position:0% some other examples are chain link oracles<00:06:01.800> and<00:06:02.520> uh<00:06:03.240> the<00:06:03.419> pricing<00:06:03.720> of<00:06:03.900> other 00:06:04.129 --> 00:06:04.139 align:start position:0% oracles and uh the pricing of other 00:06:04.139 --> 00:06:08.890 align:start position:0% oracles and uh the pricing of other dexes<00:06:04.800> as<00:06:05.160> well 00:06:08.890 --> 00:06:08.900 align:start position:0% 00:06:08.900 --> 00:06:11.930 align:start position:0% so<00:06:09.900> last<00:06:10.740> thing<00:06:10.919> before<00:06:11.100> we<00:06:11.340> get<00:06:11.460> into<00:06:11.639> the 00:06:11.930 --> 00:06:11.940 align:start position:0% so last thing before we get into the 00:06:11.940 --> 00:06:13.790 align:start position:0% so last thing before we get into the actual<00:06:12.240> amms 00:06:13.790 --> 00:06:13.800 align:start position:0% actual amms 00:06:13.800 --> 00:06:17.090 align:start position:0% actual amms um<00:06:13.860> I<00:06:14.160> do<00:06:14.280> want<00:06:14.580> to<00:06:14.759> concretely<00:06:15.660> cover 00:06:17.090 --> 00:06:17.100 align:start position:0% um I do want to concretely cover 00:06:17.100 --> 00:06:18.170 align:start position:0% um I do want to concretely cover um 00:06:18.170 --> 00:06:18.180 align:start position:0% um 00:06:18.180 --> 00:06:20.270 align:start position:0% um what<00:06:18.960> where<00:06:19.199> how<00:06:19.620> I'm<00:06:19.740> actually<00:06:19.919> going<00:06:20.100> to<00:06:20.220> be 00:06:20.270 --> 00:06:20.280 align:start position:0% what where how I'm actually going to be 00:06:20.280 --> 00:06:22.070 align:start position:0% what where how I'm actually going to be showing<00:06:20.580> these<00:06:20.820> amms<00:06:21.360> right<00:06:21.600> I'm<00:06:21.840> going<00:06:22.020> to 00:06:22.070 --> 00:06:22.080 align:start position:0% showing these amms right I'm going to 00:06:22.080 --> 00:06:24.890 align:start position:0% showing these amms right I'm going to avoid<00:06:22.500> the<00:06:23.280> math<00:06:23.400> it's<00:06:23.940> very<00:06:24.120> interesting<00:06:24.479> but 00:06:24.890 --> 00:06:24.900 align:start position:0% avoid the math it's very interesting but 00:06:24.900 --> 00:06:28.490 align:start position:0% avoid the math it's very interesting but it's<00:06:25.620> not<00:06:25.919> uh<00:06:26.580> it's<00:06:27.000> not<00:06:27.180> fit<00:06:27.419> for<00:06:27.780> a<00:06:28.080> 25<00:06:28.139> minute 00:06:28.490 --> 00:06:28.500 align:start position:0% it's not uh it's not fit for a 25 minute 00:06:28.500 --> 00:06:31.430 align:start position:0% it's not uh it's not fit for a 25 minute talk<00:06:29.160> on<00:06:29.580> nine<00:06:30.000> different<00:06:30.120> uh<00:06:30.600> amms<00:06:31.139> so 00:06:31.430 --> 00:06:31.440 align:start position:0% talk on nine different uh amms so 00:06:31.440 --> 00:06:33.170 align:start position:0% talk on nine different uh amms so instead<00:06:32.100> I'm<00:06:32.220> going<00:06:32.340> to<00:06:32.460> show<00:06:32.580> this<00:06:32.819> trading 00:06:33.170 --> 00:06:33.180 align:start position:0% instead I'm going to show this trading 00:06:33.180 --> 00:06:35.090 align:start position:0% instead I'm going to show this trading function<00:06:33.479> which<00:06:34.199> is<00:06:34.319> hopefully<00:06:34.620> a<00:06:34.800> bit<00:06:34.919> more 00:06:35.090 --> 00:06:35.100 align:start position:0% function which is hopefully a bit more 00:06:35.100 --> 00:06:37.189 align:start position:0% function which is hopefully a bit more intuitive<00:06:35.580> and<00:06:36.479> basically<00:06:36.840> what<00:06:37.080> this 00:06:37.189 --> 00:06:37.199 align:start position:0% intuitive and basically what this 00:06:37.199 --> 00:06:39.890 align:start position:0% intuitive and basically what this trading<00:06:37.560> function<00:06:37.860> shows<00:06:38.400> is<00:06:38.759> it<00:06:39.000> shows 00:06:39.890 --> 00:06:39.900 align:start position:0% trading function shows is it shows 00:06:39.900 --> 00:06:42.529 align:start position:0% trading function shows is it shows uh<00:06:40.740> the<00:06:41.160> space<00:06:41.340> of<00:06:41.520> possible<00:06:41.819> trades<00:06:42.240> that 00:06:42.529 --> 00:06:42.539 align:start position:0% uh the space of possible trades that 00:06:42.539 --> 00:06:45.050 align:start position:0% uh the space of possible trades that this<00:06:42.840> uh<00:06:43.080> Market<00:06:43.259> maker<00:06:43.740> will<00:06:43.919> actually<00:06:44.160> allow 00:06:45.050 --> 00:06:45.060 align:start position:0% this uh Market maker will actually allow 00:06:45.060 --> 00:06:48.409 align:start position:0% this uh Market maker will actually allow right<00:06:45.600> so<00:06:46.020> on<00:06:46.319> the<00:06:46.500> x-axis<00:06:47.039> we<00:06:47.340> have 00:06:48.409 --> 00:06:48.419 align:start position:0% right so on the x-axis we have 00:06:48.419 --> 00:06:50.930 align:start position:0% right so on the x-axis we have um 00:06:50.930 --> 00:06:50.940 align:start position:0% 00:06:50.940 --> 00:06:53.570 align:start position:0% on<00:06:51.419> the<00:06:51.600> x-axis<00:06:52.139> we<00:06:52.440> have<00:06:52.560> the 00:06:53.570 --> 00:06:53.580 align:start position:0% on the x-axis we have the 00:06:53.580 --> 00:06:55.909 align:start position:0% on the x-axis we have the input<00:06:54.120> amount<00:06:54.419> and<00:06:54.720> on<00:06:54.840> the<00:06:55.020> y-axis<00:06:55.500> we<00:06:55.800> have 00:06:55.909 --> 00:06:55.919 align:start position:0% input amount and on the y-axis we have 00:06:55.919 --> 00:06:57.350 align:start position:0% input amount and on the y-axis we have the 00:06:57.350 --> 00:06:57.360 align:start position:0% the 00:06:57.360 --> 00:07:00.590 align:start position:0% the um<00:06:57.900> output<00:06:58.440> amount<00:06:58.860> and<00:06:59.639> this<00:06:59.819> curve<00:07:00.180> is<00:07:00.360> the 00:07:00.590 --> 00:07:00.600 align:start position:0% um output amount and this curve is the 00:07:00.600 --> 00:07:03.170 align:start position:0% um output amount and this curve is the space<00:07:00.840> of<00:07:01.500> uh<00:07:02.039> trades<00:07:02.400> that<00:07:02.520> you<00:07:02.639> can<00:07:02.759> make<00:07:02.940> so 00:07:03.170 --> 00:07:03.180 align:start position:0% space of uh trades that you can make so 00:07:03.180 --> 00:07:05.390 align:start position:0% space of uh trades that you can make so this<00:07:03.479> point<00:07:03.780> for<00:07:04.380> instance<00:07:04.620> is<00:07:04.800> one<00:07:05.039> trade<00:07:05.280> you 00:07:05.390 --> 00:07:05.400 align:start position:0% this point for instance is one trade you 00:07:05.400 --> 00:07:08.330 align:start position:0% this point for instance is one trade you can<00:07:05.580> make<00:07:05.699> if<00:07:06.180> you<00:07:06.360> have<00:07:06.660> 100<00:07:07.380> of<00:07:07.860> the<00:07:08.039> input 00:07:08.330 --> 00:07:08.340 align:start position:0% can make if you have 100 of the input 00:07:08.340 --> 00:07:10.670 align:start position:0% can make if you have 100 of the input asset<00:07:08.759> this<00:07:09.720> Market<00:07:09.840> maker<00:07:10.319> will<00:07:10.440> give<00:07:10.560> you 00:07:10.670 --> 00:07:10.680 align:start position:0% asset this Market maker will give you 00:07:10.680 --> 00:07:14.689 align:start position:0% asset this Market maker will give you out<00:07:10.860> 200<00:07:11.520> of<00:07:12.240> the<00:07:13.080> output<00:07:13.380> asset 00:07:14.689 --> 00:07:14.699 align:start position:0% out 200 of the output asset 00:07:14.699 --> 00:07:18.050 align:start position:0% out 200 of the output asset and<00:07:15.539> at<00:07:16.139> any<00:07:16.259> given<00:07:16.560> point<00:07:16.680> the<00:07:16.979> slope<00:07:17.280> uh<00:07:17.880> sort 00:07:18.050 --> 00:07:18.060 align:start position:0% and at any given point the slope uh sort 00:07:18.060 --> 00:07:19.969 align:start position:0% and at any given point the slope uh sort of<00:07:18.180> shows<00:07:18.479> you<00:07:18.600> the<00:07:19.139> marginal<00:07:19.500> price<00:07:19.680> that 00:07:19.969 --> 00:07:19.979 align:start position:0% of shows you the marginal price that 00:07:19.979 --> 00:07:21.589 align:start position:0% of shows you the marginal price that you're<00:07:20.099> getting<00:07:20.280> if<00:07:20.639> you<00:07:20.819> keep<00:07:20.940> on<00:07:21.120> putting 00:07:21.589 --> 00:07:21.599 align:start position:0% you're getting if you keep on putting 00:07:21.599 --> 00:07:25.969 align:start position:0% you're getting if you keep on putting input<00:07:22.319> into<00:07:22.620> this<00:07:22.860> Market<00:07:23.039> maker 00:07:25.969 --> 00:07:25.979 align:start position:0% 00:07:25.979 --> 00:07:27.950 align:start position:0% so<00:07:26.520> with<00:07:26.759> all<00:07:26.880> of<00:07:27.000> that<00:07:27.120> in<00:07:27.240> mind<00:07:27.360> we<00:07:27.599> can<00:07:27.720> we 00:07:27.950 --> 00:07:27.960 align:start position:0% so with all of that in mind we can we 00:07:27.960 --> 00:07:30.350 align:start position:0% so with all of that in mind we can we can<00:07:28.080> Now<00:07:28.259> cover<00:07:28.440> our<00:07:28.860> very<00:07:28.979> first<00:07:29.280> amm<00:07:30.000> and 00:07:30.350 --> 00:07:30.360 align:start position:0% can Now cover our very first amm and 00:07:30.360 --> 00:07:32.210 align:start position:0% can Now cover our very first amm and this<00:07:30.539> one<00:07:30.660> is<00:07:30.960> the<00:07:31.199> constant<00:07:31.560> product<00:07:31.860> Market 00:07:32.210 --> 00:07:32.220 align:start position:0% this one is the constant product Market 00:07:32.220 --> 00:07:35.570 align:start position:0% this one is the constant product Market maker<00:07:33.240> uh<00:07:33.840> so<00:07:33.960> this<00:07:34.199> one's<00:07:34.500> huge<00:07:35.160> it's<00:07:35.340> very 00:07:35.570 --> 00:07:35.580 align:start position:0% maker uh so this one's huge it's very 00:07:35.580 --> 00:07:37.790 align:start position:0% maker uh so this one's huge it's very important<00:07:35.880> it's<00:07:36.419> been<00:07:36.660> uh<00:07:37.440> it's<00:07:37.680> probably 00:07:37.790 --> 00:07:37.800 align:start position:0% important it's been uh it's probably 00:07:37.800 --> 00:07:40.309 align:start position:0% important it's been uh it's probably well<00:07:38.220> it<00:07:38.520> is<00:07:38.639> the<00:07:38.880> most<00:07:39.000> popular<00:07:39.240> one<00:07:39.660> uh<00:07:40.139> it 00:07:40.309 --> 00:07:40.319 align:start position:0% well it is the most popular one uh it 00:07:40.319 --> 00:07:42.710 align:start position:0% well it is the most popular one uh it was<00:07:40.380> introduced<00:07:40.800> by<00:07:41.220> bancor<00:07:42.000> originally<00:07:42.419> then 00:07:42.710 --> 00:07:42.720 align:start position:0% was introduced by bancor originally then 00:07:42.720 --> 00:07:46.490 align:start position:0% was introduced by bancor originally then uniswot<00:07:43.440> V1<00:07:43.740> and<00:07:44.039> unit<00:07:44.280> swap<00:07:44.580> V2<00:07:44.880> both<00:07:45.360> used<00:07:46.199> it 00:07:46.490 --> 00:07:46.500 align:start position:0% uniswot V1 and unit swap V2 both used it 00:07:46.500 --> 00:07:49.309 align:start position:0% uniswot V1 and unit swap V2 both used it and<00:07:46.560> popularized<00:07:47.220> it<00:07:47.340> a<00:07:47.520> lot 00:07:49.309 --> 00:07:49.319 align:start position:0% and popularized it a lot 00:07:49.319 --> 00:07:50.870 align:start position:0% and popularized it a lot um<00:07:49.380> it's<00:07:49.680> also<00:07:49.979> important<00:07:50.280> for<00:07:50.460> the<00:07:50.580> context 00:07:50.870 --> 00:07:50.880 align:start position:0% um it's also important for the context 00:07:50.880 --> 00:07:53.150 align:start position:0% um it's also important for the context of<00:07:51.120> this<00:07:51.300> talk<00:07:51.479> because<00:07:51.900> it<00:07:52.860> essentially 00:07:53.150 --> 00:07:53.160 align:start position:0% of this talk because it essentially 00:07:53.160 --> 00:07:54.409 align:start position:0% of this talk because it essentially embodies 00:07:54.409 --> 00:07:54.419 align:start position:0% embodies 00:07:54.419 --> 00:07:57.890 align:start position:0% embodies uh<00:07:55.259> full-on<00:07:55.979> price<00:07:56.220> Discovery<00:07:56.819> right<00:07:57.300> unit 00:07:57.890 --> 00:07:57.900 align:start position:0% uh full-on price Discovery right unit 00:07:57.900 --> 00:08:02.330 align:start position:0% uh full-on price Discovery right unit swap<00:07:58.319> V2<00:07:58.699> has<00:07:59.699> no<00:07:59.880> notion<00:08:00.300> of<00:08:00.900> uh<00:08:01.560> what<00:08:01.919> a<00:08:02.160> value 00:08:02.330 --> 00:08:02.340 align:start position:0% swap V2 has no notion of uh what a value 00:08:02.340 --> 00:08:05.689 align:start position:0% swap V2 has no notion of uh what a value or<00:08:02.880> what<00:08:03.180> an<00:08:03.960> asset<00:08:04.259> should<00:08:04.500> be<00:08:04.620> valued<00:08:05.039> at<00:08:05.220> it 00:08:05.689 --> 00:08:05.699 align:start position:0% or what an asset should be valued at it 00:08:05.699 --> 00:08:07.909 align:start position:0% or what an asset should be valued at it simply<00:08:06.060> discovers<00:08:06.660> that<00:08:06.900> price 00:08:07.909 --> 00:08:07.919 align:start position:0% simply discovers that price 00:08:07.919 --> 00:08:10.249 align:start position:0% simply discovers that price and<00:08:08.400> how<00:08:08.580> it<00:08:08.699> does<00:08:08.880> that<00:08:09.120> is<00:08:09.419> it<00:08:09.780> sets<00:08:10.139> the 00:08:10.249 --> 00:08:10.259 align:start position:0% and how it does that is it sets the 00:08:10.259 --> 00:08:13.249 align:start position:0% and how it does that is it sets the price<00:08:10.380> as<00:08:10.740> the<00:08:10.979> ratio<00:08:11.340> of<00:08:12.000> how<00:08:12.780> much<00:08:12.900> of<00:08:13.080> each 00:08:13.249 --> 00:08:13.259 align:start position:0% price as the ratio of how much of each 00:08:13.259 --> 00:08:16.430 align:start position:0% price as the ratio of how much of each asset<00:08:13.680> it<00:08:13.979> owns<00:08:14.340> and<00:08:14.639> that<00:08:14.819> allows 00:08:16.430 --> 00:08:16.440 align:start position:0% asset it owns and that allows 00:08:16.440 --> 00:08:19.369 align:start position:0% asset it owns and that allows um<00:08:16.919> the<00:08:17.400> price<00:08:17.520> to<00:08:17.759> essentially<00:08:18.120> respond<00:08:18.599> to 00:08:19.369 --> 00:08:19.379 align:start position:0% um the price to essentially respond to 00:08:19.379 --> 00:08:22.010 align:start position:0% um the price to essentially respond to uh<00:08:20.039> demand<00:08:20.520> so<00:08:21.000> you<00:08:21.240> can<00:08:21.300> see<00:08:21.419> in<00:08:21.599> the<00:08:21.720> trading 00:08:22.010 --> 00:08:22.020 align:start position:0% uh demand so you can see in the trading 00:08:22.020 --> 00:08:26.029 align:start position:0% uh demand so you can see in the trading curve<00:08:22.319> as<00:08:23.160> you<00:08:23.699> put<00:08:24.419> more<00:08:24.599> and<00:08:24.720> more<00:08:24.900> in<00:08:25.199> the 00:08:26.029 --> 00:08:26.039 align:start position:0% curve as you put more and more in the 00:08:26.039 --> 00:08:27.770 align:start position:0% curve as you put more and more in the slope<00:08:26.280> of<00:08:26.580> the<00:08:26.699> curve<00:08:26.940> continues<00:08:27.419> to<00:08:27.599> decrease 00:08:27.770 --> 00:08:27.780 align:start position:0% slope of the curve continues to decrease 00:08:27.780 --> 00:08:30.409 align:start position:0% slope of the curve continues to decrease and<00:08:28.560> that's<00:08:28.740> showing<00:08:29.160> the<00:08:29.520> price<00:08:29.639> responding 00:08:30.409 --> 00:08:30.419 align:start position:0% and that's showing the price responding 00:08:30.419 --> 00:08:33.409 align:start position:0% and that's showing the price responding to<00:08:31.379> uh<00:08:31.979> the<00:08:32.219> trading<00:08:32.580> so<00:08:32.760> it's<00:08:32.880> discovering 00:08:33.409 --> 00:08:33.419 align:start position:0% to uh the trading so it's discovering 00:08:33.419 --> 00:08:35.269 align:start position:0% to uh the trading so it's discovering the<00:08:33.659> price 00:08:35.269 --> 00:08:35.279 align:start position:0% the price 00:08:35.279 --> 00:08:36.649 align:start position:0% the price now 00:08:36.649 --> 00:08:36.659 align:start position:0% now 00:08:36.659 --> 00:08:39.529 align:start position:0% now on<00:08:37.200> the<00:08:37.320> other<00:08:37.380> hand<00:08:37.640> as<00:08:38.640> we<00:08:38.760> said<00:08:38.940> if<00:08:39.300> you<00:08:39.419> can 00:08:39.529 --> 00:08:39.539 align:start position:0% on the other hand as we said if you can 00:08:39.539 --> 00:08:42.649 align:start position:0% on the other hand as we said if you can leverage<00:08:39.839> an<00:08:40.080> oracle<00:08:40.580> that<00:08:41.580> can<00:08:41.700> lead<00:08:41.940> to<00:08:42.360> much 00:08:42.649 --> 00:08:42.659 align:start position:0% leverage an oracle that can lead to much 00:08:42.659 --> 00:08:45.530 align:start position:0% leverage an oracle that can lead to much better<00:08:42.899> pricing<00:08:43.800> and<00:08:44.459> so<00:08:44.760> a<00:08:45.000> constant<00:08:45.300> sum 00:08:45.530 --> 00:08:45.540 align:start position:0% better pricing and so a constant sum 00:08:45.540 --> 00:08:48.769 align:start position:0% better pricing and so a constant sum Market<00:08:45.720> maker<00:08:46.260> is<00:08:46.860> uh<00:08:47.760> sort<00:08:48.000> of<00:08:48.120> the<00:08:48.420> full-on 00:08:48.769 --> 00:08:48.779 align:start position:0% Market maker is uh sort of the full-on 00:08:48.779 --> 00:08:51.170 align:start position:0% Market maker is uh sort of the full-on embodiment<00:08:49.320> of<00:08:49.620> this<00:08:49.860> right<00:08:50.339> so<00:08:50.700> a<00:08:50.880> constant 00:08:51.170 --> 00:08:51.180 align:start position:0% embodiment of this right so a constant 00:08:51.180 --> 00:08:53.509 align:start position:0% embodiment of this right so a constant sum<00:08:51.420> Market<00:08:51.600> maker<00:08:52.140> will 00:08:53.509 --> 00:08:53.519 align:start position:0% sum Market maker will 00:08:53.519 --> 00:08:55.730 align:start position:0% sum Market maker will provide<00:08:54.060> a<00:08:54.240> fixed<00:08:54.480> rate<00:08:54.600> of<00:08:54.839> exchange<00:08:55.260> at 00:08:55.730 --> 00:08:55.740 align:start position:0% provide a fixed rate of exchange at 00:08:55.740 --> 00:08:57.470 align:start position:0% provide a fixed rate of exchange at whatever<00:08:55.980> the<00:08:56.220> Oracle<00:08:56.700> is 00:08:57.470 --> 00:08:57.480 align:start position:0% whatever the Oracle is 00:08:57.480 --> 00:08:58.910 align:start position:0% whatever the Oracle is so 00:08:58.910 --> 00:08:58.920 align:start position:0% so 00:08:58.920 --> 00:09:01.070 align:start position:0% so you<00:08:59.820> can<00:08:59.940> see<00:09:00.060> on<00:09:00.180> the<00:09:00.300> trading<00:09:00.600> function<00:09:00.839> on 00:09:01.070 --> 00:09:01.080 align:start position:0% you can see on the trading function on 00:09:01.080 --> 00:09:03.410 align:start position:0% you can see on the trading function on the<00:09:01.140> right<00:09:01.519> there<00:09:02.519> is<00:09:02.640> now<00:09:02.820> a<00:09:03.060> completely 00:09:03.410 --> 00:09:03.420 align:start position:0% the right there is now a completely 00:09:03.420 --> 00:09:06.110 align:start position:0% the right there is now a completely constant<00:09:03.899> slope<00:09:04.260> so<00:09:04.560> a<00:09:04.800> constant<00:09:05.100> price<00:09:05.339> all 00:09:06.110 --> 00:09:06.120 align:start position:0% constant slope so a constant price all 00:09:06.120 --> 00:09:07.970 align:start position:0% constant slope so a constant price all the<00:09:06.300> way<00:09:06.360> up<00:09:06.540> until<00:09:06.720> the<00:09:07.200> market<00:09:07.320> maker<00:09:07.740> runs 00:09:07.970 --> 00:09:07.980 align:start position:0% the way up until the market maker runs 00:09:07.980 --> 00:09:10.310 align:start position:0% the way up until the market maker runs out<00:09:08.160> of<00:09:08.339> assets 00:09:10.310 --> 00:09:10.320 align:start position:0% out of assets 00:09:10.320 --> 00:09:12.769 align:start position:0% out of assets um<00:09:10.380> at<00:09:11.160> which<00:09:11.339> point<00:09:11.640> uh<00:09:12.240> you<00:09:12.420> can't<00:09:12.540> trade 00:09:12.769 --> 00:09:12.779 align:start position:0% um at which point uh you can't trade 00:09:12.779 --> 00:09:14.870 align:start position:0% um at which point uh you can't trade anymore<00:09:12.959> right<00:09:13.320> because<00:09:13.620> uh<00:09:14.580> the<00:09:14.760> market 00:09:14.870 --> 00:09:14.880 align:start position:0% anymore right because uh the market 00:09:14.880 --> 00:09:17.389 align:start position:0% anymore right because uh the market maker<00:09:15.240> no<00:09:15.420> longer<00:09:15.720> owns<00:09:16.140> any<00:09:16.560> of<00:09:16.800> this<00:09:17.100> output 00:09:17.389 --> 00:09:17.399 align:start position:0% maker no longer owns any of this output 00:09:17.399 --> 00:09:19.970 align:start position:0% maker no longer owns any of this output asset<00:09:17.880> and<00:09:18.660> this<00:09:18.839> turns<00:09:19.140> out<00:09:19.260> to<00:09:19.440> be<00:09:19.560> a<00:09:19.800> very 00:09:19.970 --> 00:09:19.980 align:start position:0% asset and this turns out to be a very 00:09:19.980 --> 00:09:21.889 align:start position:0% asset and this turns out to be a very precarious<00:09:20.700> position<00:09:20.940> for<00:09:21.300> the<00:09:21.420> market<00:09:21.480> maker 00:09:21.889 --> 00:09:21.899 align:start position:0% precarious position for the market maker 00:09:21.899 --> 00:09:23.449 align:start position:0% precarious position for the market maker to<00:09:22.019> be<00:09:22.140> in 00:09:23.449 --> 00:09:23.459 align:start position:0% to be in 00:09:23.459 --> 00:09:25.430 align:start position:0% to be in um<00:09:23.580> for<00:09:24.240> one<00:09:24.420> they're<00:09:24.660> not<00:09:24.839> earning<00:09:25.140> revenue 00:09:25.430 --> 00:09:25.440 align:start position:0% um for one they're not earning revenue 00:09:25.440 --> 00:09:27.470 align:start position:0% um for one they're not earning revenue from<00:09:25.860> Trading<00:09:26.220> anymore<00:09:26.459> because<00:09:26.880> they're<00:09:27.240> a 00:09:27.470 --> 00:09:27.480 align:start position:0% from Trading anymore because they're a 00:09:27.480 --> 00:09:31.130 align:start position:0% from Trading anymore because they're a liquid<00:09:28.040> and<00:09:29.040> for<00:09:29.640> two<00:09:29.820> they<00:09:30.180> now<00:09:30.360> don't<00:09:30.839> have<00:09:31.019> a 00:09:31.130 --> 00:09:31.140 align:start position:0% liquid and for two they now don't have a 00:09:31.140 --> 00:09:32.870 align:start position:0% liquid and for two they now don't have a portfolio<00:09:31.620> right<00:09:31.920> they<00:09:32.160> own<00:09:32.279> all<00:09:32.519> of<00:09:32.700> one 00:09:32.870 --> 00:09:32.880 align:start position:0% portfolio right they own all of one 00:09:32.880 --> 00:09:36.889 align:start position:0% portfolio right they own all of one asset<00:09:33.240> and<00:09:33.980> there's<00:09:34.980> a<00:09:35.160> lot<00:09:35.220> higher<00:09:35.580> risk<00:09:35.940> of 00:09:36.889 --> 00:09:36.899 align:start position:0% asset and there's a lot higher risk of 00:09:36.899 --> 00:09:39.350 align:start position:0% asset and there's a lot higher risk of portfolio<00:09:37.680> value<00:09:37.980> change<00:09:38.279> there<00:09:38.700> which 00:09:39.350 --> 00:09:39.360 align:start position:0% portfolio value change there which 00:09:39.360 --> 00:09:42.050 align:start position:0% portfolio value change there which generally<00:09:39.839> they<00:09:40.080> want<00:09:40.200> to<00:09:40.320> avoid 00:09:42.050 --> 00:09:42.060 align:start position:0% generally they want to avoid 00:09:42.060 --> 00:09:44.630 align:start position:0% generally they want to avoid um<00:09:42.120> so<00:09:42.600> there<00:09:42.779> are<00:09:42.899> some<00:09:43.080> examples<00:09:43.440> of<00:09:43.680> this<00:09:43.920> uh 00:09:44.630 --> 00:09:44.640 align:start position:0% um so there are some examples of this uh 00:09:44.640 --> 00:09:47.810 align:start position:0% um so there are some examples of this uh technically<00:09:45.600> any<00:09:46.080> wrapper<00:09:46.680> contract<00:09:47.279> is<00:09:47.640> a 00:09:47.810 --> 00:09:47.820 align:start position:0% technically any wrapper contract is a 00:09:47.820 --> 00:09:50.930 align:start position:0% technically any wrapper contract is a constant<00:09:48.120> some<00:09:48.240> Market<00:09:48.480> maker<00:09:48.899> like<00:09:49.620> Ave 00:09:50.930 --> 00:09:50.940 align:start position:0% constant some Market maker like Ave 00:09:50.940 --> 00:09:51.470 align:start position:0% constant some Market maker like Ave um 00:09:51.470 --> 00:09:51.480 align:start position:0% um 00:09:51.480 --> 00:09:54.710 align:start position:0% um maker<00:09:52.140> has<00:09:52.320> a<00:09:52.440> peg<00:09:52.620> stability<00:09:53.040> module<00:09:53.580> uh<00:09:54.360> that 00:09:54.710 --> 00:09:54.720 align:start position:0% maker has a peg stability module uh that 00:09:54.720 --> 00:09:58.370 align:start position:0% maker has a peg stability module uh that allows<00:09:54.959> one-to-one<00:09:55.560> exchange<00:09:56.279> of<00:09:56.959> uh<00:09:57.959> other 00:09:58.370 --> 00:09:58.380 align:start position:0% allows one-to-one exchange of uh other 00:09:58.380 --> 00:10:00.470 align:start position:0% allows one-to-one exchange of uh other stable<00:09:58.740> coins<00:09:59.040> for<00:09:59.220> die<00:09:59.459> which<00:09:59.940> sort<00:10:00.120> of<00:10:00.180> keeps 00:10:00.470 --> 00:10:00.480 align:start position:0% stable coins for die which sort of keeps 00:10:00.480 --> 00:10:03.170 align:start position:0% stable coins for die which sort of keeps the<00:10:00.660> stability<00:10:01.019> of<00:10:01.380> that<00:10:01.560> Peg<00:10:01.800> and<00:10:02.640> synthetics 00:10:03.170 --> 00:10:03.180 align:start position:0% the stability of that Peg and synthetics 00:10:03.180 --> 00:10:04.490 align:start position:0% the stability of that Peg and synthetics has 00:10:04.490 --> 00:10:04.500 align:start position:0% has 00:10:04.500 --> 00:10:05.030 align:start position:0% has um 00:10:05.030 --> 00:10:05.040 align:start position:0% um 00:10:05.040 --> 00:10:08.810 align:start position:0% um a<00:10:05.459> fixed<00:10:05.700> rate<00:10:05.820> of<00:10:06.060> exchange<00:10:06.620> using<00:10:07.620> uh<00:10:08.339> other 00:10:08.810 --> 00:10:08.820 align:start position:0% a fixed rate of exchange using uh other 00:10:08.820 --> 00:10:10.910 align:start position:0% a fixed rate of exchange using uh other external<00:10:09.360> oracles<00:10:09.839> for<00:10:10.200> their<00:10:10.380> synthetic 00:10:10.910 --> 00:10:10.920 align:start position:0% external oracles for their synthetic 00:10:10.920 --> 00:10:13.910 align:start position:0% external oracles for their synthetic assets<00:10:11.220> which<00:10:11.519> is<00:10:11.640> also<00:10:11.880> quite<00:10:12.120> powerful 00:10:13.910 --> 00:10:13.920 align:start position:0% assets which is also quite powerful 00:10:13.920 --> 00:10:15.230 align:start position:0% assets which is also quite powerful um 00:10:15.230 --> 00:10:15.240 align:start position:0% um 00:10:15.240 --> 00:10:18.410 align:start position:0% um so<00:10:15.779> those<00:10:15.899> serve<00:10:16.380> as<00:10:16.920> uh<00:10:17.640> both<00:10:17.940> models<00:10:18.300> that 00:10:18.410 --> 00:10:18.420 align:start position:0% so those serve as uh both models that 00:10:18.420 --> 00:10:19.910 align:start position:0% so those serve as uh both models that are<00:10:18.540> used<00:10:18.660> in<00:10:18.839> practice<00:10:19.080> but<00:10:19.500> for<00:10:19.740> the 00:10:19.910 --> 00:10:19.920 align:start position:0% are used in practice but for the 00:10:19.920 --> 00:10:21.769 align:start position:0% are used in practice but for the purposes<00:10:20.339> of<00:10:20.519> this<00:10:20.700> talk<00:10:20.880> they<00:10:21.240> sort<00:10:21.420> of<00:10:21.540> serve 00:10:21.769 --> 00:10:21.779 align:start position:0% purposes of this talk they sort of serve 00:10:21.779 --> 00:10:24.350 align:start position:0% purposes of this talk they sort of serve more<00:10:21.899> as<00:10:22.140> boundaries<00:10:22.680> right<00:10:23.519> they<00:10:23.820> both<00:10:24.000> have 00:10:24.350 --> 00:10:24.360 align:start position:0% more as boundaries right they both have 00:10:24.360 --> 00:10:28.550 align:start position:0% more as boundaries right they both have some<00:10:25.080> big<00:10:25.200> weaknesses<00:10:25.800> the<00:10:26.100> constant<00:10:26.459> sum<00:10:26.760> is 00:10:28.550 --> 00:10:28.560 align:start position:0% some big weaknesses the constant sum is 00:10:28.560 --> 00:10:29.630 align:start position:0% some big weaknesses the constant sum is um 00:10:29.630 --> 00:10:29.640 align:start position:0% um 00:10:29.640 --> 00:10:31.370 align:start position:0% um if<00:10:30.060> your<00:10:30.180> Oracle<00:10:30.540> is<00:10:30.779> even<00:10:30.899> slightly<00:10:31.260> off 00:10:31.370 --> 00:10:31.380 align:start position:0% if your Oracle is even slightly off 00:10:31.380 --> 00:10:33.350 align:start position:0% if your Oracle is even slightly off you're<00:10:31.680> gonna<00:10:31.860> just<00:10:32.160> lose<00:10:32.399> all<00:10:32.640> of<00:10:32.820> one<00:10:32.940> asset 00:10:33.350 --> 00:10:33.360 align:start position:0% you're gonna just lose all of one asset 00:10:33.360 --> 00:10:34.370 align:start position:0% you're gonna just lose all of one asset and<00:10:33.540> you're<00:10:33.660> not<00:10:33.839> actually<00:10:34.080> going<00:10:34.200> to<00:10:34.320> be 00:10:34.370 --> 00:10:34.380 align:start position:0% and you're not actually going to be 00:10:34.380 --> 00:10:36.110 align:start position:0% and you're not actually going to be Market<00:10:34.560> making<00:10:34.800> anymore<00:10:35.100> while<00:10:35.519> the<00:10:35.760> constant 00:10:36.110 --> 00:10:36.120 align:start position:0% Market making anymore while the constant 00:10:36.120 --> 00:10:38.630 align:start position:0% Market making anymore while the constant product<00:10:36.360> while<00:10:37.140> extremely<00:10:37.620> powerful<00:10:38.040> is<00:10:38.459> not 00:10:38.630 --> 00:10:38.640 align:start position:0% product while extremely powerful is not 00:10:38.640 --> 00:10:41.690 align:start position:0% product while extremely powerful is not very<00:10:38.880> efficient<00:10:39.360> with<00:10:39.899> its<00:10:40.200> money<00:10:40.320> because<00:10:41.279> it 00:10:41.690 --> 00:10:41.700 align:start position:0% very efficient with its money because it 00:10:41.700 --> 00:10:43.910 align:start position:0% very efficient with its money because it knows<00:10:42.180> nothing<00:10:42.300> about<00:10:42.660> what<00:10:43.260> the<00:10:43.620> asset 00:10:43.910 --> 00:10:43.920 align:start position:0% knows nothing about what the asset 00:10:43.920 --> 00:10:46.670 align:start position:0% knows nothing about what the asset should<00:10:44.160> be<00:10:44.339> worth<00:10:44.519> and<00:10:45.120> so<00:10:45.360> uh<00:10:46.320> essentially 00:10:46.670 --> 00:10:46.680 align:start position:0% should be worth and so uh essentially 00:10:46.680 --> 00:10:47.990 align:start position:0% should be worth and so uh essentially what<00:10:46.860> the<00:10:47.100> rest<00:10:47.220> of<00:10:47.339> this<00:10:47.399> talk<00:10:47.579> is<00:10:47.760> going<00:10:47.880> to 00:10:47.990 --> 00:10:48.000 align:start position:0% what the rest of this talk is going to 00:10:48.000 --> 00:10:50.750 align:start position:0% what the rest of this talk is going to cover<00:10:48.120> is<00:10:48.720> different<00:10:49.560> types<00:10:49.980> of<00:10:50.100> mechanisms 00:10:50.750 --> 00:10:50.760 align:start position:0% cover is different types of mechanisms 00:10:50.760 --> 00:10:54.130 align:start position:0% cover is different types of mechanisms they<00:10:51.000> can<00:10:51.180> cover<00:10:51.360> that<00:10:52.200> middle<00:10:52.440> ground 00:10:54.130 --> 00:10:54.140 align:start position:0% they can cover that middle ground 00:10:54.140 --> 00:10:56.990 align:start position:0% they can cover that middle ground and<00:10:55.140> these<00:10:55.620> are<00:10:55.740> these<00:10:56.279> can<00:10:56.339> be<00:10:56.459> known<00:10:56.700> as 00:10:56.990 --> 00:10:57.000 align:start position:0% and these are these can be known as 00:10:57.000 --> 00:10:58.730 align:start position:0% and these are these can be known as hybrid<00:10:57.420> amms 00:10:58.730 --> 00:10:58.740 align:start position:0% hybrid amms 00:10:58.740 --> 00:11:01.430 align:start position:0% hybrid amms the<00:10:59.640> first<00:10:59.700> of<00:10:59.880> which<00:11:00.060> will<00:11:00.360> be<00:11:00.600> stable<00:11:01.019> swap 00:11:01.430 --> 00:11:01.440 align:start position:0% the first of which will be stable swap 00:11:01.440 --> 00:11:03.410 align:start position:0% the first of which will be stable swap uh<00:11:01.980> so<00:11:02.160> stable<00:11:02.399> swap<00:11:02.760> was<00:11:02.880> introduced<00:11:03.240> by 00:11:03.410 --> 00:11:03.420 align:start position:0% uh so stable swap was introduced by 00:11:03.420 --> 00:11:05.990 align:start position:0% uh so stable swap was introduced by curve<00:11:03.839> and<00:11:04.800> essentially<00:11:05.220> what<00:11:05.459> stable<00:11:05.700> swap 00:11:05.990 --> 00:11:06.000 align:start position:0% curve and essentially what stable swap 00:11:06.000 --> 00:11:09.230 align:start position:0% curve and essentially what stable swap is<00:11:06.240> trying<00:11:06.360> to<00:11:06.540> do<00:11:06.660> is<00:11:07.260> it<00:11:08.040> is<00:11:08.220> moving<00:11:08.519> from<00:11:08.940> a 00:11:09.230 --> 00:11:09.240 align:start position:0% is trying to do is it is moving from a 00:11:09.240 --> 00:11:10.730 align:start position:0% is trying to do is it is moving from a constant<00:11:09.600> sum 00:11:10.730 --> 00:11:10.740 align:start position:0% constant sum 00:11:10.740 --> 00:11:13.370 align:start position:0% constant sum uh<00:11:11.220> Market<00:11:11.399> maker<00:11:11.820> so<00:11:12.000> from<00:11:12.360> a<00:11:12.720> really<00:11:12.839> a<00:11:13.079> fixed 00:11:13.370 --> 00:11:13.380 align:start position:0% uh Market maker so from a really a fixed 00:11:13.380 --> 00:11:16.310 align:start position:0% uh Market maker so from a really a fixed rate<00:11:13.500> of<00:11:13.980> exchange<00:11:14.420> to<00:11:15.420> a<00:11:15.720> constant<00:11:16.019> product 00:11:16.310 --> 00:11:16.320 align:start position:0% rate of exchange to a constant product 00:11:16.320 --> 00:11:19.250 align:start position:0% rate of exchange to a constant product as<00:11:17.220> the<00:11:18.000> reserves<00:11:18.360> get<00:11:18.540> more<00:11:18.660> and<00:11:18.779> more<00:11:18.959> out<00:11:19.079> of 00:11:19.250 --> 00:11:19.260 align:start position:0% as the reserves get more and more out of 00:11:19.260 --> 00:11:21.050 align:start position:0% as the reserves get more and more out of balance<00:11:19.560> because<00:11:19.860> as<00:11:20.279> the<00:11:20.399> reserves<00:11:20.760> get<00:11:20.940> more 00:11:21.050 --> 00:11:21.060 align:start position:0% balance because as the reserves get more 00:11:21.060 --> 00:11:23.690 align:start position:0% balance because as the reserves get more and<00:11:21.240> more<00:11:21.779> out<00:11:22.079> of<00:11:22.200> balance<00:11:22.500> you<00:11:23.339> can<00:11:23.459> imagine 00:11:23.690 --> 00:11:23.700 align:start position:0% and more out of balance you can imagine 00:11:23.700 --> 00:11:26.389 align:start position:0% and more out of balance you can imagine that<00:11:24.300> your<00:11:24.600> price<00:11:24.839> is<00:11:25.140> probably<00:11:25.440> a<00:11:26.040> bit<00:11:26.160> off 00:11:26.389 --> 00:11:26.399 align:start position:0% that your price is probably a bit off 00:11:26.399 --> 00:11:28.190 align:start position:0% that your price is probably a bit off right<00:11:26.700> and<00:11:27.000> so<00:11:27.180> you<00:11:27.300> want<00:11:27.420> to<00:11:27.540> start<00:11:27.720> adjusting 00:11:28.190 --> 00:11:28.200 align:start position:0% right and so you want to start adjusting 00:11:28.200 --> 00:11:30.530 align:start position:0% right and so you want to start adjusting that<00:11:28.440> price<00:11:28.680> while<00:11:29.579> still<00:11:29.820> taking<00:11:30.000> advantage 00:11:30.530 --> 00:11:30.540 align:start position:0% that price while still taking advantage 00:11:30.540 --> 00:11:34.370 align:start position:0% that price while still taking advantage of<00:11:31.160> that<00:11:32.160> one-to-one<00:11:32.700> exchange<00:11:33.240> rate 00:11:34.370 --> 00:11:34.380 align:start position:0% of that one-to-one exchange rate 00:11:34.380 --> 00:11:35.870 align:start position:0% of that one-to-one exchange rate and<00:11:35.100> so 00:11:35.870 --> 00:11:35.880 align:start position:0% and so 00:11:35.880 --> 00:11:37.910 align:start position:0% and so this<00:11:36.600> equation<00:11:36.959> also<00:11:37.440> has<00:11:37.620> this 00:11:37.910 --> 00:11:37.920 align:start position:0% this equation also has this 00:11:37.920 --> 00:11:40.190 align:start position:0% this equation also has this amplification<00:11:38.459> parameter<00:11:39.120> and<00:11:39.779> that's<00:11:39.959> what 00:11:40.190 --> 00:11:40.200 align:start position:0% amplification parameter and that's what 00:11:40.200 --> 00:11:42.769 align:start position:0% amplification parameter and that's what you're<00:11:40.320> seeing<00:11:40.620> in<00:11:41.100> the<00:11:41.459> animation<00:11:42.180> on<00:11:42.660> the 00:11:42.769 --> 00:11:42.779 align:start position:0% you're seeing in the animation on the 00:11:42.779 --> 00:11:44.030 align:start position:0% you're seeing in the animation on the right 00:11:44.030 --> 00:11:44.040 align:start position:0% right 00:11:44.040 --> 00:11:45.829 align:start position:0% right and<00:11:44.880> you're<00:11:44.940> seeing<00:11:45.180> that<00:11:45.420> as<00:11:45.660> that 00:11:45.829 --> 00:11:45.839 align:start position:0% and you're seeing that as that 00:11:45.839 --> 00:11:48.889 align:start position:0% and you're seeing that as that amplification<00:11:46.380> parameter<00:11:46.920> increases<00:11:47.660> uh<00:11:48.660> the 00:11:48.889 --> 00:11:48.899 align:start position:0% amplification parameter increases uh the 00:11:48.899 --> 00:11:51.590 align:start position:0% amplification parameter increases uh the stable<00:11:49.079> swap<00:11:49.440> curve<00:11:49.740> in<00:11:49.920> purple<00:11:50.360> moves<00:11:51.360> from 00:11:51.590 --> 00:11:51.600 align:start position:0% stable swap curve in purple moves from 00:11:51.600 --> 00:11:53.750 align:start position:0% stable swap curve in purple moves from the<00:11:51.839> constant<00:11:52.200> product<00:11:52.440> in<00:11:52.980> blue<00:11:53.220> to<00:11:53.519> the 00:11:53.750 --> 00:11:53.760 align:start position:0% the constant product in blue to the 00:11:53.760 --> 00:11:55.329 align:start position:0% the constant product in blue to the constant<00:11:54.120> sum 00:11:55.329 --> 00:11:55.339 align:start position:0% constant sum 00:11:55.339 --> 00:11:57.769 align:start position:0% constant sum very<00:11:56.339> quickly<00:11:56.640> closely<00:11:57.180> approximating 00:11:57.769 --> 00:11:57.779 align:start position:0% very quickly closely approximating 00:11:57.779 --> 00:12:00.170 align:start position:0% very quickly closely approximating constant<00:11:58.320> sum<00:11:58.620> because<00:11:58.920> again<00:11:59.579> we<00:11:59.940> want<00:12:00.060> to 00:12:00.170 --> 00:12:00.180 align:start position:0% constant sum because again we want to 00:12:00.180 --> 00:12:01.790 align:start position:0% constant sum because again we want to leverage<00:12:00.420> this<00:12:00.779> one-to-one<00:12:01.200> exchange<00:12:01.560> rate 00:12:01.790 --> 00:12:01.800 align:start position:0% leverage this one-to-one exchange rate 00:12:01.800 --> 00:12:05.269 align:start position:0% leverage this one-to-one exchange rate as<00:12:02.459> much<00:12:02.579> as<00:12:02.760> possible 00:12:05.269 --> 00:12:05.279 align:start position:0% 00:12:05.279 --> 00:12:06.710 align:start position:0% um 00:12:06.710 --> 00:12:06.720 align:start position:0% um 00:12:06.720 --> 00:12:08.810 align:start position:0% um so 00:12:08.810 --> 00:12:08.820 align:start position:0% so 00:12:08.820 --> 00:12:11.569 align:start position:0% so other<00:12:09.480> than<00:12:09.899> stable<00:12:10.560> swap<00:12:10.920> there<00:12:11.220> are<00:12:11.339> some 00:12:11.569 --> 00:12:11.579 align:start position:0% other than stable swap there are some 00:12:11.579 --> 00:12:13.550 align:start position:0% other than stable swap there are some other<00:12:11.700> stable<00:12:12.060> Solutions<00:12:12.480> stable<00:12:13.079> swaps 00:12:13.550 --> 00:12:13.560 align:start position:0% other stable Solutions stable swaps 00:12:13.560 --> 00:12:17.269 align:start position:0% other stable Solutions stable swaps generally<00:12:13.860> the<00:12:14.640> industry<00:12:15.060> standard<00:12:16.279> more 00:12:17.269 --> 00:12:17.279 align:start position:0% generally the industry standard more 00:12:17.279 --> 00:12:19.970 align:start position:0% generally the industry standard more recently<00:12:17.640> though<00:12:17.820> there's<00:12:18.120> been<00:12:18.440> uh<00:12:19.440> solidly 00:12:19.970 --> 00:12:19.980 align:start position:0% recently though there's been uh solidly 00:12:19.980 --> 00:12:21.769 align:start position:0% recently though there's been uh solidly introduced<00:12:20.459> an<00:12:20.700> alternative<00:12:21.060> equation<00:12:21.480> for 00:12:21.769 --> 00:12:21.779 align:start position:0% introduced an alternative equation for 00:12:21.779 --> 00:12:24.650 align:start position:0% introduced an alternative equation for stable<00:12:22.019> swap<00:12:22.579> which<00:12:23.579> is<00:12:23.760> generally<00:12:24.120> a<00:12:24.540> bit 00:12:24.650 --> 00:12:24.660 align:start position:0% stable swap which is generally a bit 00:12:24.660 --> 00:12:27.769 align:start position:0% stable swap which is generally a bit more<00:12:25.140> uh<00:12:25.860> slightly<00:12:26.459> simpler<00:12:26.880> simpler<00:12:27.480> to<00:12:27.600> use 00:12:27.769 --> 00:12:27.779 align:start position:0% more uh slightly simpler simpler to use 00:12:27.779 --> 00:12:29.150 align:start position:0% more uh slightly simpler simpler to use as<00:12:28.019> well<00:12:28.200> because<00:12:28.380> it<00:12:28.620> doesn't<00:12:28.740> have<00:12:28.980> that 00:12:29.150 --> 00:12:29.160 align:start position:0% as well because it doesn't have that 00:12:29.160 --> 00:12:31.490 align:start position:0% as well because it doesn't have that amplification<00:12:29.700> parameter 00:12:31.490 --> 00:12:31.500 align:start position:0% amplification parameter 00:12:31.500 --> 00:12:33.769 align:start position:0% amplification parameter um<00:12:32.040> for<00:12:32.519> the<00:12:32.640> purposes<00:12:32.880> of<00:12:33.060> this<00:12:33.240> talk<00:12:33.360> we<00:12:33.660> can 00:12:33.769 --> 00:12:33.779 align:start position:0% um for the purposes of this talk we can 00:12:33.779 --> 00:12:35.329 align:start position:0% um for the purposes of this talk we can compare<00:12:34.079> it<00:12:34.200> to<00:12:34.380> stable<00:12:34.620> Swap<00:12:34.980> and<00:12:35.220> that's 00:12:35.329 --> 00:12:35.339 align:start position:0% compare it to stable Swap and that's 00:12:35.339 --> 00:12:37.550 align:start position:0% compare it to stable Swap and that's what<00:12:35.519> you're<00:12:35.640> seeing<00:12:35.880> on<00:12:36.240> the<00:12:36.540> in<00:12:37.079> the<00:12:37.260> trading 00:12:37.550 --> 00:12:37.560 align:start position:0% what you're seeing on the in the trading 00:12:37.560 --> 00:12:39.710 align:start position:0% what you're seeing on the in the trading functions<00:12:37.860> on<00:12:38.100> the<00:12:38.220> right<00:12:38.339> you're<00:12:39.300> seeing 00:12:39.710 --> 00:12:39.720 align:start position:0% functions on the right you're seeing 00:12:39.720 --> 00:12:42.230 align:start position:0% functions on the right you're seeing solidly<00:12:40.680> stable<00:12:40.980> in<00:12:41.339> purple<00:12:41.519> compared<00:12:42.180> to 00:12:42.230 --> 00:12:42.240 align:start position:0% solidly stable in purple compared to 00:12:42.240 --> 00:12:44.410 align:start position:0% solidly stable in purple compared to stable<00:12:42.660> swap<00:12:43.019> with<00:12:43.260> an<00:12:43.380> amplification<00:12:43.860> of<00:12:44.160> two 00:12:44.410 --> 00:12:44.420 align:start position:0% stable swap with an amplification of two 00:12:44.420 --> 00:12:46.970 align:start position:0% stable swap with an amplification of two and<00:12:45.420> they're<00:12:46.019> still<00:12:46.260> different<00:12:46.440> but<00:12:46.800> they're 00:12:46.970 --> 00:12:46.980 align:start position:0% and they're still different but they're 00:12:46.980 --> 00:12:51.110 align:start position:0% and they're still different but they're about<00:12:47.220> the<00:12:47.579> same<00:12:47.700> at<00:12:48.180> that<00:12:48.480> parameterization 00:12:51.110 --> 00:12:51.120 align:start position:0% about the same at that parameterization 00:12:51.120 --> 00:12:53.629 align:start position:0% about the same at that parameterization um<00:12:51.180> now<00:12:52.019> an<00:12:52.320> amplification<00:12:52.740> of<00:12:52.980> 2<00:12:53.160> is<00:12:53.459> actually 00:12:53.629 --> 00:12:53.639 align:start position:0% um now an amplification of 2 is actually 00:12:53.639 --> 00:12:55.910 align:start position:0% um now an amplification of 2 is actually quite<00:12:53.880> low<00:12:54.240> typically<00:12:55.019> it's<00:12:55.320> much<00:12:55.620> higher 00:12:55.910 --> 00:12:55.920 align:start position:0% quite low typically it's much higher 00:12:55.920 --> 00:12:58.730 align:start position:0% quite low typically it's much higher than<00:12:56.040> this<00:12:56.339> so<00:12:57.120> solidly<00:12:57.959> stable<00:12:58.260> essentially 00:12:58.730 --> 00:12:58.740 align:start position:0% than this so solidly stable essentially 00:12:58.740 --> 00:13:03.050 align:start position:0% than this so solidly stable essentially represents<00:12:59.459> a<00:13:00.540> uh<00:13:01.380> a<00:13:01.740> low<00:13:01.920> risk<00:13:02.339> sort<00:13:02.940> of 00:13:03.050 --> 00:13:03.060 align:start position:0% represents a uh a low risk sort of 00:13:03.060 --> 00:13:04.310 align:start position:0% represents a uh a low risk sort of stable<00:13:03.240> swap<00:13:03.600> that's<00:13:03.839> still<00:13:04.019> a<00:13:04.200> big 00:13:04.310 --> 00:13:04.320 align:start position:0% stable swap that's still a big 00:13:04.320 --> 00:13:06.410 align:start position:0% stable swap that's still a big improvement<00:13:04.740> over<00:13:05.459> the<00:13:05.760> constant<00:13:06.120> product 00:13:06.410 --> 00:13:06.420 align:start position:0% improvement over the constant product 00:13:06.420 --> 00:13:08.449 align:start position:0% improvement over the constant product when<00:13:07.139> there<00:13:07.320> is<00:13:07.440> that<00:13:07.680> one-to-one<00:13:08.160> exchange 00:13:08.449 --> 00:13:08.459 align:start position:0% when there is that one-to-one exchange 00:13:08.459 --> 00:13:11.269 align:start position:0% when there is that one-to-one exchange rate<00:13:08.639> to<00:13:08.940> Leverage 00:13:11.269 --> 00:13:11.279 align:start position:0% 00:13:11.279 --> 00:13:13.790 align:start position:0% next<00:13:11.760> up<00:13:11.940> we<00:13:12.180> have<00:13:12.360> dodo's<00:13:13.200> proactive<00:13:13.620> Market 00:13:13.790 --> 00:13:13.800 align:start position:0% next up we have dodo's proactive Market 00:13:13.800 --> 00:13:16.009 align:start position:0% next up we have dodo's proactive Market maker<00:13:14.339> so 00:13:16.009 --> 00:13:16.019 align:start position:0% maker so 00:13:16.019 --> 00:13:16.610 align:start position:0% maker so um 00:13:16.610 --> 00:13:16.620 align:start position:0% um 00:13:16.620 --> 00:13:19.490 align:start position:0% um dodo<00:13:17.579> has<00:13:17.820> a<00:13:17.940> mechanism<00:13:18.300> again<00:13:18.779> leveraging 00:13:19.490 --> 00:13:19.500 align:start position:0% dodo has a mechanism again leveraging 00:13:19.500 --> 00:13:22.009 align:start position:0% dodo has a mechanism again leveraging some<00:13:19.860> external<00:13:20.339> Oracle<00:13:20.820> this<00:13:21.540> can<00:13:21.720> be<00:13:21.839> chain 00:13:22.009 --> 00:13:22.019 align:start position:0% some external Oracle this can be chain 00:13:22.019 --> 00:13:23.629 align:start position:0% some external Oracle this can be chain link<00:13:22.260> this<00:13:22.620> can<00:13:22.800> be<00:13:22.920> this<00:13:23.220> one-to-one 00:13:23.629 --> 00:13:23.639 align:start position:0% link this can be this one-to-one 00:13:23.639 --> 00:13:26.449 align:start position:0% link this can be this one-to-one exchange<00:13:24.000> rate 00:13:26.449 --> 00:13:26.459 align:start position:0% 00:13:26.459 --> 00:13:28.810 align:start position:0% um<00:13:26.519> and<00:13:27.060> they<00:13:27.300> introduced<00:13:27.720> this<00:13:27.959> parameter<00:13:28.440> K 00:13:28.810 --> 00:13:28.820 align:start position:0% um and they introduced this parameter K 00:13:28.820 --> 00:13:33.050 align:start position:0% um and they introduced this parameter K that<00:13:29.820> allows<00:13:30.600> you<00:13:31.200> to<00:13:31.760> continuously<00:13:32.760> adjust 00:13:33.050 --> 00:13:33.060 align:start position:0% that allows you to continuously adjust 00:13:33.060 --> 00:13:35.690 align:start position:0% that allows you to continuously adjust from<00:13:33.600> the<00:13:33.779> constant<00:13:34.139> sum<00:13:34.440> to<00:13:35.160> the<00:13:35.339> constant 00:13:35.690 --> 00:13:35.700 align:start position:0% from the constant sum to the constant 00:13:35.700 --> 00:13:38.750 align:start position:0% from the constant sum to the constant product<00:13:36.000> as<00:13:36.420> K<00:13:36.660> is<00:13:36.899> increased 00:13:38.750 --> 00:13:38.760 align:start position:0% product as K is increased 00:13:38.760 --> 00:13:40.490 align:start position:0% product as K is increased um<00:13:38.820> and<00:13:39.420> it<00:13:39.600> does<00:13:39.720> this<00:13:39.899> in<00:13:40.079> a<00:13:40.200> bit<00:13:40.320> of<00:13:40.440> a 00:13:40.490 --> 00:13:40.500 align:start position:0% um and it does this in a bit of a 00:13:40.500 --> 00:13:42.350 align:start position:0% um and it does this in a bit of a smoother<00:13:40.800> way<00:13:40.980> than<00:13:41.160> stable<00:13:41.459> swap<00:13:41.820> with<00:13:42.000> which 00:13:42.350 --> 00:13:42.360 align:start position:0% smoother way than stable swap with which 00:13:42.360 --> 00:13:45.829 align:start position:0% smoother way than stable swap with which makes<00:13:42.920> uh<00:13:43.920> more<00:13:44.279> Dynamic<00:13:44.700> oracles<00:13:45.300> possible 00:13:45.829 --> 00:13:45.839 align:start position:0% makes uh more Dynamic oracles possible 00:13:45.839 --> 00:13:47.269 align:start position:0% makes uh more Dynamic oracles possible to<00:13:46.019> use 00:13:47.269 --> 00:13:47.279 align:start position:0% to use 00:13:47.279 --> 00:13:50.690 align:start position:0% to use in<00:13:47.880> general<00:13:48.079> uh<00:13:49.079> you<00:13:49.440> can<00:13:49.500> sort<00:13:49.740> of<00:13:49.800> think<00:13:50.040> of<00:13:50.339> K 00:13:50.690 --> 00:13:50.700 align:start position:0% in general uh you can sort of think of K 00:13:50.700 --> 00:13:53.389 align:start position:0% in general uh you can sort of think of K as<00:13:51.480> representing<00:13:52.139> your<00:13:52.500> confidence<00:13:52.860> in<00:13:53.279> the 00:13:53.389 --> 00:13:53.399 align:start position:0% as representing your confidence in the 00:13:53.399 --> 00:13:56.030 align:start position:0% as representing your confidence in the oracle<00:13:54.240> right<00:13:54.720> so<00:13:54.899> if<00:13:55.139> you<00:13:55.380> have<00:13:55.560> if<00:13:55.920> you're 00:13:56.030 --> 00:13:56.040 align:start position:0% oracle right so if you have if you're 00:13:56.040 --> 00:13:57.710 align:start position:0% oracle right so if you have if you're extremely<00:13:56.399> confident<00:13:56.760> that<00:13:57.060> the<00:13:57.180> Oracle<00:13:57.540> is 00:13:57.710 --> 00:13:57.720 align:start position:0% extremely confident that the Oracle is 00:13:57.720 --> 00:14:00.290 align:start position:0% extremely confident that the Oracle is correct<00:13:58.019> you<00:13:58.980> can<00:13:59.040> set<00:13:59.220> K<00:13:59.399> to<00:13:59.639> zero<00:14:00.000> and<00:14:00.180> you 00:14:00.290 --> 00:14:00.300 align:start position:0% correct you can set K to zero and you 00:14:00.300 --> 00:14:02.090 align:start position:0% correct you can set K to zero and you get<00:14:00.480> a<00:14:00.600> constant<00:14:00.959> sum<00:14:01.260> you<00:14:01.560> just<00:14:01.740> get<00:14:01.860> that 00:14:02.090 --> 00:14:02.100 align:start position:0% get a constant sum you just get that 00:14:02.100 --> 00:14:03.650 align:start position:0% get a constant sum you just get that fixed<00:14:02.459> exchange<00:14:02.820> rate 00:14:03.650 --> 00:14:03.660 align:start position:0% fixed exchange rate 00:14:03.660 --> 00:14:07.129 align:start position:0% fixed exchange rate whereas<00:14:04.620> uh<00:14:05.459> if<00:14:05.760> your<00:14:05.880> Oracle<00:14:06.420> is<00:14:06.839> less 00:14:07.129 --> 00:14:07.139 align:start position:0% whereas uh if your Oracle is less 00:14:07.139 --> 00:14:09.410 align:start position:0% whereas uh if your Oracle is less reliable<00:14:07.620> let's<00:14:08.579> say<00:14:08.760> it's<00:14:08.940> a<00:14:09.120> chain<00:14:09.240> link 00:14:09.410 --> 00:14:09.420 align:start position:0% reliable let's say it's a chain link 00:14:09.420 --> 00:14:12.829 align:start position:0% reliable let's say it's a chain link Oracle<00:14:10.019> that<00:14:10.260> can't<00:14:10.440> update<00:14:10.920> super<00:14:11.220> often 00:14:12.829 --> 00:14:12.839 align:start position:0% Oracle that can't update super often 00:14:12.839 --> 00:14:15.230 align:start position:0% Oracle that can't update super often you<00:14:13.260> may<00:14:13.380> set<00:14:13.620> K<00:14:13.980> somewhere<00:14:14.519> in<00:14:14.700> between<00:14:14.880> these 00:14:15.230 --> 00:14:15.240 align:start position:0% you may set K somewhere in between these 00:14:15.240 --> 00:14:18.650 align:start position:0% you may set K somewhere in between these two<00:14:15.480> and<00:14:16.380> the<00:14:16.680> Curve<00:14:16.980> will<00:14:17.339> leverage<00:14:18.300> that 00:14:18.650 --> 00:14:18.660 align:start position:0% two and the Curve will leverage that 00:14:18.660 --> 00:14:20.750 align:start position:0% two and the Curve will leverage that Oracle<00:14:19.139> to<00:14:19.320> inform<00:14:19.560> its<00:14:19.920> pricing<00:14:20.220> but<00:14:20.459> it<00:14:20.639> will 00:14:20.750 --> 00:14:20.760 align:start position:0% Oracle to inform its pricing but it will 00:14:20.760 --> 00:14:23.750 align:start position:0% Oracle to inform its pricing but it will also<00:14:21.240> discover<00:14:21.899> the<00:14:22.380> price<00:14:22.560> if<00:14:23.160> that<00:14:23.459> Oracle 00:14:23.750 --> 00:14:23.760 align:start position:0% also discover the price if that Oracle 00:14:23.760 --> 00:14:25.670 align:start position:0% also discover the price if that Oracle turns<00:14:24.120> out<00:14:24.240> to<00:14:24.360> be<00:14:24.540> incorrect<00:14:25.139> or<00:14:25.440> there's 00:14:25.670 --> 00:14:25.680 align:start position:0% turns out to be incorrect or there's 00:14:25.680 --> 00:14:29.269 align:start position:0% turns out to be incorrect or there's large<00:14:26.040> trade<00:14:26.700> volume 00:14:29.269 --> 00:14:29.279 align:start position:0% 00:14:29.279 --> 00:14:32.389 align:start position:0% uh<00:14:29.820> Clipper<00:14:30.300> is<00:14:30.959> another<00:14:31.440> one<00:14:31.860> that<00:14:32.160> actually 00:14:32.389 --> 00:14:32.399 align:start position:0% uh Clipper is another one that actually 00:14:32.399 --> 00:14:34.490 align:start position:0% uh Clipper is another one that actually has<00:14:32.820> a<00:14:33.180> k<00:14:33.360> parameter<00:14:33.779> that<00:14:33.959> serves<00:14:34.260> a<00:14:34.380> very 00:14:34.490 --> 00:14:34.500 align:start position:0% has a k parameter that serves a very 00:14:34.500 --> 00:14:36.129 align:start position:0% has a k parameter that serves a very similar<00:14:34.800> purpose 00:14:36.129 --> 00:14:36.139 align:start position:0% similar purpose 00:14:36.139 --> 00:14:38.930 align:start position:0% similar purpose the<00:14:37.139> math<00:14:37.320> behind<00:14:37.680> it<00:14:37.860> is<00:14:38.040> is<00:14:38.279> very<00:14:38.639> different 00:14:38.930 --> 00:14:38.940 align:start position:0% the math behind it is is very different 00:14:38.940 --> 00:14:41.449 align:start position:0% the math behind it is is very different and<00:14:39.660> very<00:14:39.899> interesting<00:14:40.260> but 00:14:41.449 --> 00:14:41.459 align:start position:0% and very interesting but 00:14:41.459 --> 00:14:44.090 align:start position:0% and very interesting but um<00:14:42.000> the<00:14:42.420> end<00:14:42.600> result<00:14:42.839> is<00:14:43.199> again<00:14:43.440> you<00:14:43.680> get<00:14:43.860> this 00:14:44.090 --> 00:14:44.100 align:start position:0% um the end result is again you get this 00:14:44.100 --> 00:14:45.410 align:start position:0% um the end result is again you get this curve 00:14:45.410 --> 00:14:45.420 align:start position:0% curve 00:14:45.420 --> 00:14:47.150 align:start position:0% curve um<00:14:45.480> and<00:14:45.779> this<00:14:45.959> parameter<00:14:46.380> K<00:14:46.560> that<00:14:46.800> allows<00:14:47.100> you 00:14:47.150 --> 00:14:47.160 align:start position:0% um and this parameter K that allows you 00:14:47.160 --> 00:14:49.850 align:start position:0% um and this parameter K that allows you to<00:14:47.339> adjust<00:14:47.579> the<00:14:48.180> curve<00:14:48.480> between<00:14:49.199> the<00:14:49.560> constant 00:14:49.850 --> 00:14:49.860 align:start position:0% to adjust the curve between the constant 00:14:49.860 --> 00:14:52.490 align:start position:0% to adjust the curve between the constant sum<00:14:50.160> and<00:14:51.060> the<00:14:51.300> constant<00:14:51.600> product<00:14:51.899> Market 00:14:52.490 --> 00:14:52.500 align:start position:0% sum and the constant product Market 00:14:52.500 --> 00:14:53.990 align:start position:0% sum and the constant product Market maker 00:14:53.990 --> 00:14:54.000 align:start position:0% maker 00:14:54.000 --> 00:14:56.389 align:start position:0% maker now<00:14:54.959> the<00:14:55.139> interpretation<00:14:55.620> of<00:14:55.860> K<00:14:56.040> as 00:14:56.389 --> 00:14:56.399 align:start position:0% now the interpretation of K as 00:14:56.399 --> 00:14:58.329 align:start position:0% now the interpretation of K as confidence<00:14:56.760> in<00:14:57.000> the<00:14:57.120> Oracle<00:14:57.480> sort<00:14:57.779> of<00:14:57.899> has 00:14:58.329 --> 00:14:58.339 align:start position:0% confidence in the Oracle sort of has 00:14:58.339 --> 00:15:01.129 align:start position:0% confidence in the Oracle sort of has some<00:14:59.339> extra<00:14:59.579> meaning<00:15:00.060> here 00:15:01.129 --> 00:15:01.139 align:start position:0% some extra meaning here 00:15:01.139 --> 00:15:03.710 align:start position:0% some extra meaning here in<00:15:01.680> that<00:15:01.860> Clipper<00:15:02.399> originally<00:15:03.300> deployed 00:15:03.710 --> 00:15:03.720 align:start position:0% in that Clipper originally deployed 00:15:03.720 --> 00:15:06.290 align:start position:0% in that Clipper originally deployed their<00:15:03.959> amm<00:15:04.440> fully<00:15:05.100> on<00:15:05.279> chain<00:15:05.519> leveraging<00:15:06.120> and 00:15:06.290 --> 00:15:06.300 align:start position:0% their amm fully on chain leveraging and 00:15:06.300 --> 00:15:08.930 align:start position:0% their amm fully on chain leveraging and on<00:15:06.480> chain<00:15:06.660> chain<00:15:06.959> link<00:15:07.139> Oracle 00:15:08.930 --> 00:15:08.940 align:start position:0% on chain chain link Oracle 00:15:08.940 --> 00:15:11.689 align:start position:0% on chain chain link Oracle um<00:15:09.360> now<00:15:09.899> as<00:15:10.079> I<00:15:10.260> mentioned<00:15:10.560> the<00:15:11.160> limitation 00:15:11.689 --> 00:15:11.699 align:start position:0% um now as I mentioned the limitation 00:15:11.699 --> 00:15:14.329 align:start position:0% um now as I mentioned the limitation with<00:15:12.420> a<00:15:12.839> chain<00:15:12.959> link<00:15:13.139> Oracle<00:15:13.620> is<00:15:13.800> that<00:15:14.040> it 00:15:14.329 --> 00:15:14.339 align:start position:0% with a chain link Oracle is that it 00:15:14.339 --> 00:15:16.370 align:start position:0% with a chain link Oracle is that it can't<00:15:14.519> possibly<00:15:15.060> update<00:15:15.540> faster<00:15:15.899> than<00:15:16.139> the 00:15:16.370 --> 00:15:16.380 align:start position:0% can't possibly update faster than the 00:15:16.380 --> 00:15:17.329 align:start position:0% can't possibly update faster than the block<00:15:16.500> time 00:15:17.329 --> 00:15:17.339 align:start position:0% block time 00:15:17.339 --> 00:15:20.329 align:start position:0% block time and<00:15:18.120> so<00:15:18.420> you<00:15:19.019> can't<00:15:19.139> have<00:15:19.380> full<00:15:19.620> confidence<00:15:19.980> in 00:15:20.329 --> 00:15:20.339 align:start position:0% and so you can't have full confidence in 00:15:20.339 --> 00:15:24.410 align:start position:0% and so you can't have full confidence in the<00:15:20.399> Oracle<00:15:20.959> uh<00:15:21.980> when<00:15:22.980> its<00:15:23.880> update<00:15:24.060> time<00:15:24.240> is 00:15:24.410 --> 00:15:24.420 align:start position:0% the Oracle uh when its update time is 00:15:24.420 --> 00:15:26.629 align:start position:0% the Oracle uh when its update time is limited<00:15:24.779> so<00:15:25.260> more<00:15:25.740> recently<00:15:26.100> what<00:15:26.399> they've 00:15:26.629 --> 00:15:26.639 align:start position:0% limited so more recently what they've 00:15:26.639 --> 00:15:29.389 align:start position:0% limited so more recently what they've done<00:15:26.760> is<00:15:27.000> they've<00:15:27.420> actually<00:15:27.600> built<00:15:28.440> a<00:15:29.040> another 00:15:29.389 --> 00:15:29.399 align:start position:0% done is they've actually built a another 00:15:29.399 --> 00:15:30.590 align:start position:0% done is they've actually built a another version 00:15:30.590 --> 00:15:30.600 align:start position:0% version 00:15:30.600 --> 00:15:32.750 align:start position:0% version that<00:15:31.019> can<00:15:31.139> leverage<00:15:31.500> a<00:15:32.040> fully<00:15:32.339> off<00:15:32.519> chain 00:15:32.750 --> 00:15:32.760 align:start position:0% that can leverage a fully off chain 00:15:32.760 --> 00:15:35.329 align:start position:0% that can leverage a fully off chain Oracle<00:15:33.360> and<00:15:33.959> we're<00:15:34.139> gonna<00:15:34.320> come<00:15:34.740> back<00:15:34.920> to<00:15:35.100> how 00:15:35.329 --> 00:15:35.339 align:start position:0% Oracle and we're gonna come back to how 00:15:35.339 --> 00:15:37.610 align:start position:0% Oracle and we're gonna come back to how that's<00:15:35.459> possible<00:15:35.880> later<00:15:36.120> in<00:15:36.300> the<00:15:36.480> talk 00:15:37.610 --> 00:15:37.620 align:start position:0% that's possible later in the talk 00:15:37.620 --> 00:15:40.250 align:start position:0% that's possible later in the talk um<00:15:37.740> but<00:15:38.220> for<00:15:38.399> now<00:15:38.519> the<00:15:39.060> the<00:15:39.540> context<00:15:39.899> of<00:15:40.139> that 00:15:40.250 --> 00:15:40.260 align:start position:0% um but for now the the context of that 00:15:40.260 --> 00:15:43.009 align:start position:0% um but for now the the context of that is<00:15:40.440> that<00:15:40.800> this<00:15:41.699> allowed<00:15:42.000> them<00:15:42.120> to<00:15:42.360> set<00:15:42.420> K<00:15:42.660> much 00:15:43.009 --> 00:15:43.019 align:start position:0% is that this allowed them to set K much 00:15:43.019 --> 00:15:45.110 align:start position:0% is that this allowed them to set K much lower<00:15:43.199> and<00:15:43.740> so<00:15:43.920> this<00:15:44.160> is<00:15:44.279> sort<00:15:44.519> of<00:15:44.579> a<00:15:44.820> concrete 00:15:45.110 --> 00:15:45.120 align:start position:0% lower and so this is sort of a concrete 00:15:45.120 --> 00:15:48.050 align:start position:0% lower and so this is sort of a concrete example<00:15:45.480> of<00:15:45.779> K<00:15:46.019> being<00:15:46.519> the<00:15:47.519> confidence<00:15:47.760> you 00:15:48.050 --> 00:15:48.060 align:start position:0% example of K being the confidence you 00:15:48.060 --> 00:15:51.310 align:start position:0% example of K being the confidence you have<00:15:48.240> in<00:15:48.600> this<00:15:48.839> Oracle<00:15:49.320> price 00:15:51.310 --> 00:15:51.320 align:start position:0% have in this Oracle price 00:15:51.320 --> 00:15:54.769 align:start position:0% have in this Oracle price so<00:15:52.320> last<00:15:52.980> uh<00:15:53.399> hybrid<00:15:53.760> amm<00:15:54.480> we're<00:15:54.600> going<00:15:54.720> to 00:15:54.769 --> 00:15:54.779 align:start position:0% so last uh hybrid amm we're going to 00:15:54.779 --> 00:15:57.949 align:start position:0% so last uh hybrid amm we're going to cover<00:15:54.839> today<00:15:55.139> is<00:15:55.620> crypto<00:15:56.040> swap 00:15:57.949 --> 00:15:57.959 align:start position:0% cover today is crypto swap 00:15:57.959 --> 00:16:00.050 align:start position:0% cover today is crypto swap um<00:15:58.079> we<00:15:58.380> covered<00:15:58.680> stable<00:15:58.980> swap<00:15:59.339> as<00:15:59.760> the<00:15:59.940> first 00:16:00.050 --> 00:16:00.060 align:start position:0% um we covered stable swap as the first 00:16:00.060 --> 00:16:02.810 align:start position:0% um we covered stable swap as the first one<00:16:00.300> and<00:16:00.959> stable<00:16:01.260> swaps<00:16:01.800> fantastic<00:16:02.399> for 00:16:02.810 --> 00:16:02.820 align:start position:0% one and stable swaps fantastic for 00:16:02.820 --> 00:16:06.590 align:start position:0% one and stable swaps fantastic for stable<00:16:03.120> assets<00:16:04.040> uh<00:16:05.040> unfortunately<00:16:06.000> it's<00:16:06.360> not 00:16:06.590 --> 00:16:06.600 align:start position:0% stable assets uh unfortunately it's not 00:16:06.600 --> 00:16:10.129 align:start position:0% stable assets uh unfortunately it's not very<00:16:06.839> good<00:16:07.079> for<00:16:07.620> more<00:16:07.860> volatile<00:16:08.399> pegs 00:16:10.129 --> 00:16:10.139 align:start position:0% very good for more volatile pegs 00:16:10.139 --> 00:16:10.790 align:start position:0% very good for more volatile pegs um 00:16:10.790 --> 00:16:10.800 align:start position:0% um 00:16:10.800 --> 00:16:14.150 align:start position:0% um because<00:16:11.399> it's<00:16:11.820> so<00:16:12.000> closely<00:16:12.860> matches<00:16:13.860> that 00:16:14.150 --> 00:16:14.160 align:start position:0% because it's so closely matches that 00:16:14.160 --> 00:16:16.730 align:start position:0% because it's so closely matches that constant<00:16:14.519> sum<00:16:14.880> curve<00:16:15.300> so<00:16:15.779> what<00:16:15.959> curve<00:16:16.320> did<00:16:16.500> is 00:16:16.730 --> 00:16:16.740 align:start position:0% constant sum curve so what curve did is 00:16:16.740 --> 00:16:19.670 align:start position:0% constant sum curve so what curve did is they<00:16:17.519> took<00:16:18.120> that<00:16:18.300> stable<00:16:18.600> swap<00:16:18.959> curve<00:16:19.380> and 00:16:19.670 --> 00:16:19.680 align:start position:0% they took that stable swap curve and 00:16:19.680 --> 00:16:21.650 align:start position:0% they took that stable swap curve and they<00:16:19.860> essentially<00:16:20.220> added<00:16:20.699> another<00:16:21.060> degree<00:16:21.480> of 00:16:21.650 --> 00:16:21.660 align:start position:0% they essentially added another degree of 00:16:21.660 --> 00:16:24.050 align:start position:0% they essentially added another degree of freedom<00:16:21.959> to<00:16:22.139> it<00:16:22.260> called<00:16:22.560> the<00:16:22.680> gamma<00:16:23.040> parameter 00:16:24.050 --> 00:16:24.060 align:start position:0% freedom to it called the gamma parameter 00:16:24.060 --> 00:16:27.290 align:start position:0% freedom to it called the gamma parameter and<00:16:24.899> this<00:16:25.260> parameter<00:16:25.680> allows<00:16:26.279> the<00:16:26.760> curve<00:16:27.000> to 00:16:27.290 --> 00:16:27.300 align:start position:0% and this parameter allows the curve to 00:16:27.300 --> 00:16:30.170 align:start position:0% and this parameter allows the curve to more<00:16:27.600> quickly<00:16:27.839> adjust<00:16:28.339> from<00:16:29.339> the<00:16:29.699> constant 00:16:30.170 --> 00:16:30.180 align:start position:0% more quickly adjust from the constant 00:16:30.180 --> 00:16:33.590 align:start position:0% more quickly adjust from the constant sum<00:16:30.540> to<00:16:31.139> the<00:16:31.500> constant<00:16:31.800> product<00:16:32.040> as<00:16:32.820> the 00:16:33.590 --> 00:16:33.600 align:start position:0% sum to the constant product as the 00:16:33.600 --> 00:16:35.090 align:start position:0% sum to the constant product as the reserves<00:16:33.959> get<00:16:34.199> more<00:16:34.320> and<00:16:34.440> more<00:16:34.620> out<00:16:34.920> of 00:16:35.090 --> 00:16:35.100 align:start position:0% reserves get more and more out of 00:16:35.100 --> 00:16:35.990 align:start position:0% reserves get more and more out of balance 00:16:35.990 --> 00:16:36.000 align:start position:0% balance 00:16:36.000 --> 00:16:37.730 align:start position:0% balance and<00:16:36.420> so<00:16:36.540> on<00:16:36.779> the<00:16:36.899> right<00:16:37.019> in<00:16:37.259> the<00:16:37.440> trading 00:16:37.730 --> 00:16:37.740 align:start position:0% and so on the right in the trading 00:16:37.740 --> 00:16:40.430 align:start position:0% and so on the right in the trading curves<00:16:38.040> what<00:16:38.820> you're<00:16:38.940> seeing<00:16:39.300> is<00:16:39.720> the<00:16:40.259> stable 00:16:40.430 --> 00:16:40.440 align:start position:0% curves what you're seeing is the stable 00:16:40.440 --> 00:16:43.370 align:start position:0% curves what you're seeing is the stable swap<00:16:40.860> curve<00:16:41.220> for<00:16:41.399> reference<00:16:41.759> in<00:16:42.060> green<00:16:42.380> next 00:16:43.370 --> 00:16:43.380 align:start position:0% swap curve for reference in green next 00:16:43.380 --> 00:16:46.189 align:start position:0% swap curve for reference in green next to<00:16:43.560> the<00:16:43.740> crypto<00:16:44.040> swap<00:16:44.399> curve<00:16:44.759> in<00:16:45.000> purple 00:16:46.189 --> 00:16:46.199 align:start position:0% to the crypto swap curve in purple 00:16:46.199 --> 00:16:48.829 align:start position:0% to the crypto swap curve in purple and<00:16:46.860> you<00:16:47.399> can<00:16:47.459> see<00:16:47.639> for<00:16:47.880> very<00:16:48.120> small<00:16:48.300> inputs 00:16:48.829 --> 00:16:48.839 align:start position:0% and you can see for very small inputs 00:16:48.839 --> 00:16:51.050 align:start position:0% and you can see for very small inputs the<00:16:49.079> crypto<00:16:49.380> swap<00:16:49.680> curve<00:16:50.040> is<00:16:50.220> actually<00:16:50.399> closer 00:16:51.050 --> 00:16:51.060 align:start position:0% the crypto swap curve is actually closer 00:16:51.060 --> 00:16:55.550 align:start position:0% the crypto swap curve is actually closer to<00:16:51.720> the<00:16:52.019> constant<00:16:52.320> sum<00:16:53.160> uh<00:16:54.120> whereas<00:16:54.660> for<00:16:55.320> very 00:16:55.550 --> 00:16:55.560 align:start position:0% to the constant sum uh whereas for very 00:16:55.560 --> 00:16:57.829 align:start position:0% to the constant sum uh whereas for very large<00:16:55.860> inputs<00:16:56.399> it's<00:16:56.699> much<00:16:56.880> quicker<00:16:57.240> to<00:16:57.540> adjust 00:16:57.829 --> 00:16:57.839 align:start position:0% large inputs it's much quicker to adjust 00:16:57.839 --> 00:17:00.050 align:start position:0% large inputs it's much quicker to adjust away<00:16:58.620> from<00:16:58.860> the<00:16:58.980> constant<00:16:59.279> sum<00:16:59.519> towards<00:16:59.940> the 00:17:00.050 --> 00:17:00.060 align:start position:0% away from the constant sum towards the 00:17:00.060 --> 00:17:02.930 align:start position:0% away from the constant sum towards the constant<00:17:00.420> product<00:17:00.680> as<00:17:01.680> it<00:17:02.100> switches<00:17:02.459> over<00:17:02.639> to 00:17:02.930 --> 00:17:02.940 align:start position:0% constant product as it switches over to 00:17:02.940 --> 00:17:04.429 align:start position:0% constant product as it switches over to price<00:17:03.180> discovery 00:17:04.429 --> 00:17:04.439 align:start position:0% price discovery 00:17:04.439 --> 00:17:07.789 align:start position:0% price discovery right<00:17:04.919> so<00:17:05.220> this<00:17:05.339> allows<00:17:05.699> it<00:17:05.880> to<00:17:06.299> be<00:17:07.079> used<00:17:07.319> for 00:17:07.789 --> 00:17:07.799 align:start position:0% right so this allows it to be used for 00:17:07.799 --> 00:17:10.429 align:start position:0% right so this allows it to be used for more<00:17:08.579> volatile<00:17:09.059> oracles<00:17:09.540> non-one-to-one 00:17:10.429 --> 00:17:10.439 align:start position:0% more volatile oracles non-one-to-one 00:17:10.439 --> 00:17:12.770 align:start position:0% more volatile oracles non-one-to-one pegs<00:17:11.040> which<00:17:11.699> makes<00:17:11.939> it 00:17:12.770 --> 00:17:12.780 align:start position:0% pegs which makes it 00:17:12.780 --> 00:17:13.370 align:start position:0% pegs which makes it um 00:17:13.370 --> 00:17:13.380 align:start position:0% um 00:17:13.380 --> 00:17:15.350 align:start position:0% um very<00:17:13.860> powerful<00:17:14.160> and<00:17:14.400> allows<00:17:14.819> curve<00:17:15.179> to 00:17:15.350 --> 00:17:15.360 align:start position:0% very powerful and allows curve to 00:17:15.360 --> 00:17:18.409 align:start position:0% very powerful and allows curve to essentially<00:17:15.720> expand<00:17:16.500> to<00:17:17.220> uh<00:17:17.640> other<00:17:17.939> options 00:17:18.409 --> 00:17:18.419 align:start position:0% essentially expand to uh other options 00:17:18.419 --> 00:17:20.630 align:start position:0% essentially expand to uh other options now<00:17:19.319> there<00:17:19.679> are<00:17:19.860> quite<00:17:20.220> a<00:17:20.339> few<00:17:20.459> other 00:17:20.630 --> 00:17:20.640 align:start position:0% now there are quite a few other 00:17:20.640 --> 00:17:22.309 align:start position:0% now there are quite a few other interesting<00:17:21.240> things<00:17:21.419> about<00:17:21.660> crypto<00:17:22.020> swap 00:17:22.309 --> 00:17:22.319 align:start position:0% interesting things about crypto swap 00:17:22.319 --> 00:17:23.809 align:start position:0% interesting things about crypto swap that<00:17:22.620> sort<00:17:22.860> of<00:17:22.919> break<00:17:23.040> the<00:17:23.220> mold<00:17:23.339> that<00:17:23.640> we 00:17:23.809 --> 00:17:23.819 align:start position:0% that sort of break the mold that we 00:17:23.819 --> 00:17:25.130 align:start position:0% that sort of break the mold that we unfortunately<00:17:24.179> don't<00:17:24.360> have<00:17:24.540> time<00:17:24.720> to<00:17:24.900> get 00:17:25.130 --> 00:17:25.140 align:start position:0% unfortunately don't have time to get 00:17:25.140 --> 00:17:27.289 align:start position:0% unfortunately don't have time to get into<00:17:25.319> so<00:17:25.620> I<00:17:25.799> encourage<00:17:26.160> anyone<00:17:27.120> who's 00:17:27.289 --> 00:17:27.299 align:start position:0% into so I encourage anyone who's 00:17:27.299 --> 00:17:30.350 align:start position:0% into so I encourage anyone who's interested<00:17:27.839> to<00:17:28.140> look<00:17:28.319> more<00:17:28.559> into<00:17:28.740> that 00:17:30.350 --> 00:17:30.360 align:start position:0% interested to look more into that 00:17:30.360 --> 00:17:31.250 align:start position:0% interested to look more into that um 00:17:31.250 --> 00:17:31.260 align:start position:0% um 00:17:31.260 --> 00:17:34.250 align:start position:0% um for<00:17:31.740> now<00:17:31.860> we're<00:17:31.980> going<00:17:32.160> to<00:17:32.220> move<00:17:32.400> into<00:17:33.260> another 00:17:34.250 --> 00:17:34.260 align:start position:0% for now we're going to move into another 00:17:34.260 --> 00:17:38.210 align:start position:0% for now we're going to move into another sort<00:17:34.679> of<00:17:34.799> type<00:17:35.460> of<00:17:35.820> amm<00:17:36.559> these<00:17:37.559> amms<00:17:38.100> still 00:17:38.210 --> 00:17:38.220 align:start position:0% sort of type of amm these amms still 00:17:38.220 --> 00:17:39.950 align:start position:0% sort of type of amm these amms still live<00:17:38.460> in<00:17:38.820> between<00:17:39.000> the<00:17:39.360> constant<00:17:39.660> sum<00:17:39.840> and 00:17:39.950 --> 00:17:39.960 align:start position:0% live in between the constant sum and 00:17:39.960 --> 00:17:42.529 align:start position:0% live in between the constant sum and constant<00:17:40.320> product<00:17:40.500> but<00:17:41.160> uh 00:17:42.529 --> 00:17:42.539 align:start position:0% constant product but uh 00:17:42.539 --> 00:17:44.510 align:start position:0% constant product but uh the<00:17:43.140> thinking<00:17:43.440> and<00:17:43.679> Concepts<00:17:44.100> behind<00:17:44.340> them 00:17:44.510 --> 00:17:44.520 align:start position:0% the thinking and Concepts behind them 00:17:44.520 --> 00:17:46.310 align:start position:0% the thinking and Concepts behind them are<00:17:44.820> a<00:17:44.940> bit<00:17:45.059> different<00:17:45.240> and<00:17:45.660> so<00:17:45.840> I<00:17:45.960> think<00:17:46.140> it's 00:17:46.310 --> 00:17:46.320 align:start position:0% are a bit different and so I think it's 00:17:46.320 --> 00:17:47.930 align:start position:0% are a bit different and so I think it's worth<00:17:46.620> approaching<00:17:47.460> them<00:17:47.580> from<00:17:47.760> another 00:17:47.930 --> 00:17:47.940 align:start position:0% worth approaching them from another 00:17:47.940 --> 00:17:49.789 align:start position:0% worth approaching them from another Direction 00:17:49.789 --> 00:17:49.799 align:start position:0% Direction 00:17:49.799 --> 00:17:52.730 align:start position:0% Direction and<00:17:50.580> that<00:17:51.059> is<00:17:51.179> through<00:17:51.419> virtual<00:17:51.840> reserves<00:17:52.320> so 00:17:52.730 --> 00:17:52.740 align:start position:0% and that is through virtual reserves so 00:17:52.740 --> 00:17:57.049 align:start position:0% and that is through virtual reserves so kyber<00:17:53.280> DMM<00:17:53.760> is<00:17:53.940> one<00:17:54.120> example<00:17:54.559> of<00:17:55.559> a<00:17:56.220> mechanism 00:17:57.049 --> 00:17:57.059 align:start position:0% kyber DMM is one example of a mechanism 00:17:57.059 --> 00:18:00.289 align:start position:0% kyber DMM is one example of a mechanism that<00:17:57.539> utilizes<00:17:58.200> virtual<00:17:58.679> reserves<00:17:59.160> and<00:17:59.760> what 00:18:00.289 --> 00:18:00.299 align:start position:0% that utilizes virtual reserves and what 00:18:00.299 --> 00:18:02.270 align:start position:0% that utilizes virtual reserves and what virtual<00:18:00.600> reserves<00:18:01.080> are<00:18:01.320> are<00:18:01.740> essentially 00:18:02.270 --> 00:18:02.280 align:start position:0% virtual reserves are are essentially 00:18:02.280 --> 00:18:05.570 align:start position:0% virtual reserves are are essentially just<00:18:02.960> pretending<00:18:03.960> to<00:18:04.320> have<00:18:04.559> more<00:18:05.160> of<00:18:05.400> the 00:18:05.570 --> 00:18:05.580 align:start position:0% just pretending to have more of the 00:18:05.580 --> 00:18:08.210 align:start position:0% just pretending to have more of the assets<00:18:05.880> than<00:18:06.120> you<00:18:06.240> actually<00:18:06.360> have<00:18:06.660> right<00:18:07.260> so 00:18:08.210 --> 00:18:08.220 align:start position:0% assets than you actually have right so 00:18:08.220 --> 00:18:10.130 align:start position:0% assets than you actually have right so we're<00:18:08.940> still<00:18:09.120> using<00:18:09.419> the<00:18:09.660> constant<00:18:09.900> product 00:18:10.130 --> 00:18:10.140 align:start position:0% we're still using the constant product 00:18:10.140 --> 00:18:13.490 align:start position:0% we're still using the constant product equation<00:18:10.679> but<00:18:11.580> we<00:18:12.179> are<00:18:12.299> saying<00:18:12.720> we<00:18:13.020> have<00:18:13.200> five 00:18:13.490 --> 00:18:13.500 align:start position:0% equation but we are saying we have five 00:18:13.500 --> 00:18:16.070 align:start position:0% equation but we are saying we have five times<00:18:13.740> more<00:18:14.039> of<00:18:14.400> each<00:18:14.580> asset<00:18:15.059> than<00:18:15.840> we 00:18:16.070 --> 00:18:16.080 align:start position:0% times more of each asset than we 00:18:16.080 --> 00:18:18.350 align:start position:0% times more of each asset than we actually<00:18:16.200> have<00:18:16.559> and<00:18:17.280> so<00:18:17.640> you<00:18:17.760> plug<00:18:18.000> these 00:18:18.350 --> 00:18:18.360 align:start position:0% actually have and so you plug these 00:18:18.360 --> 00:18:19.970 align:start position:0% actually have and so you plug these virtual<00:18:18.660> reserves<00:18:19.140> into<00:18:19.440> the<00:18:19.679> constant 00:18:19.970 --> 00:18:19.980 align:start position:0% virtual reserves into the constant 00:18:19.980 --> 00:18:22.669 align:start position:0% virtual reserves into the constant product<00:18:20.160> equation<00:18:20.720> and<00:18:21.720> you<00:18:21.900> get<00:18:22.020> what<00:18:22.260> we<00:18:22.500> see 00:18:22.669 --> 00:18:22.679 align:start position:0% product equation and you get what we see 00:18:22.679 --> 00:18:25.310 align:start position:0% product equation and you get what we see on<00:18:23.039> the<00:18:23.160> right<00:18:23.280> where<00:18:23.880> we<00:18:24.660> have<00:18:24.780> that<00:18:24.960> constant 00:18:25.310 --> 00:18:25.320 align:start position:0% on the right where we have that constant 00:18:25.320 --> 00:18:27.289 align:start position:0% on the right where we have that constant product<00:18:25.500> curve<00:18:25.980> that<00:18:26.580> moves<00:18:26.880> closer<00:18:27.240> and 00:18:27.289 --> 00:18:27.299 align:start position:0% product curve that moves closer and 00:18:27.299 --> 00:18:29.690 align:start position:0% product curve that moves closer and closer<00:18:27.600> to<00:18:27.780> the<00:18:27.960> constant<00:18:28.260> sum<00:18:28.559> as<00:18:29.280> this 00:18:29.690 --> 00:18:29.700 align:start position:0% closer to the constant sum as this 00:18:29.700 --> 00:18:33.169 align:start position:0% closer to the constant sum as this amplification<00:18:30.360> increases 00:18:33.169 --> 00:18:33.179 align:start position:0% amplification increases 00:18:33.179 --> 00:18:34.610 align:start position:0% amplification increases um<00:18:33.240> with<00:18:33.480> the<00:18:33.660> trade-off<00:18:33.960> obviously<00:18:34.440> being 00:18:34.610 --> 00:18:34.620 align:start position:0% um with the trade-off obviously being 00:18:34.620 --> 00:18:37.130 align:start position:0% um with the trade-off obviously being that<00:18:35.100> you<00:18:35.640> are<00:18:35.760> introducing<00:18:36.360> this<00:18:36.660> zone<00:18:36.900> of 00:18:37.130 --> 00:18:37.140 align:start position:0% that you are introducing this zone of 00:18:37.140 --> 00:18:38.690 align:start position:0% that you are introducing this zone of illiquidity<00:18:37.740> because<00:18:38.100> you<00:18:38.400> don't<00:18:38.520> actually 00:18:38.690 --> 00:18:38.700 align:start position:0% illiquidity because you don't actually 00:18:38.700 --> 00:18:41.330 align:start position:0% illiquidity because you don't actually have<00:18:39.179> as<00:18:39.900> much<00:18:40.080> money<00:18:40.500> as<00:18:40.740> you're<00:18:40.919> pretending 00:18:41.330 --> 00:18:41.340 align:start position:0% have as much money as you're pretending 00:18:41.340 --> 00:18:42.409 align:start position:0% have as much money as you're pretending to<00:18:41.460> have 00:18:42.409 --> 00:18:42.419 align:start position:0% to have 00:18:42.419 --> 00:18:45.190 align:start position:0% to have and<00:18:42.900> so<00:18:43.140> you<00:18:43.679> have<00:18:43.799> to<00:18:43.919> be<00:18:44.039> careful<00:18:44.340> of<00:18:44.700> course 00:18:45.190 --> 00:18:45.200 align:start position:0% and so you have to be careful of course 00:18:45.200 --> 00:18:47.870 align:start position:0% and so you have to be careful of course uh<00:18:46.200> how<00:18:46.919> much<00:18:47.100> and<00:18:47.400> where<00:18:47.580> you're 00:18:47.870 --> 00:18:47.880 align:start position:0% uh how much and where you're 00:18:47.880 --> 00:18:50.510 align:start position:0% uh how much and where you're concentrating<00:18:48.360> this<00:18:48.600> liquidity<00:18:49.140> and<00:18:50.100> you 00:18:50.510 --> 00:18:50.520 align:start position:0% concentrating this liquidity and you 00:18:50.520 --> 00:18:52.430 align:start position:0% concentrating this liquidity and you really<00:18:50.580> need<00:18:50.880> to<00:18:51.179> use 00:18:52.430 --> 00:18:52.440 align:start position:0% really need to use 00:18:52.440 --> 00:18:54.470 align:start position:0% really need to use uh<00:18:52.980> pairs<00:18:53.340> of<00:18:53.460> assets<00:18:53.820> that<00:18:54.059> are<00:18:54.179> going<00:18:54.299> to 00:18:54.470 --> 00:18:54.480 align:start position:0% uh pairs of assets that are going to 00:18:54.480 --> 00:18:56.210 align:start position:0% uh pairs of assets that are going to trade<00:18:54.600> within<00:18:55.020> some<00:18:55.260> price<00:18:55.440> range<00:18:55.860> because 00:18:56.210 --> 00:18:56.220 align:start position:0% trade within some price range because 00:18:56.220 --> 00:18:59.630 align:start position:0% trade within some price range because once<00:18:57.059> you<00:18:57.120> exit<00:18:57.480> this<00:18:57.720> price<00:18:57.960> range<00:18:58.640> you 00:18:59.630 --> 00:18:59.640 align:start position:0% once you exit this price range you 00:18:59.640 --> 00:19:01.669 align:start position:0% once you exit this price range you become<00:18:59.940> illiquid<00:19:00.600> and<00:19:01.020> you<00:19:01.200> can<00:19:01.320> no<00:19:01.440> longer 00:19:01.669 --> 00:19:01.679 align:start position:0% become illiquid and you can no longer 00:19:01.679 --> 00:19:05.090 align:start position:0% become illiquid and you can no longer Market<00:19:01.919> make<00:19:02.299> which<00:19:03.299> as<00:19:04.080> we<00:19:04.200> discussed<00:19:04.620> is<00:19:04.919> is 00:19:05.090 --> 00:19:05.100 align:start position:0% Market make which as we discussed is is 00:19:05.100 --> 00:19:07.730 align:start position:0% Market make which as we discussed is is very<00:19:05.400> bad 00:19:07.730 --> 00:19:07.740 align:start position:0% 00:19:07.740 --> 00:19:10.430 align:start position:0% um<00:19:07.799> so<00:19:08.340> what<00:19:08.520> we<00:19:08.640> really<00:19:08.760> need<00:19:09.000> is<00:19:09.480> to<00:19:09.960> be<00:19:10.260> able 00:19:10.430 --> 00:19:10.440 align:start position:0% um so what we really need is to be able 00:19:10.440 --> 00:19:11.930 align:start position:0% um so what we really need is to be able to<00:19:10.559> leverage<00:19:10.860> this<00:19:11.280> powerful<00:19:11.520> virtual 00:19:11.930 --> 00:19:11.940 align:start position:0% to leverage this powerful virtual 00:19:11.940 --> 00:19:15.950 align:start position:0% to leverage this powerful virtual Reserve<00:19:12.360> mechanism<00:19:12.799> but<00:19:13.799> to<00:19:14.280> also<00:19:14.760> uh<00:19:15.720> have 00:19:15.950 --> 00:19:15.960 align:start position:0% Reserve mechanism but to also uh have 00:19:15.960 --> 00:19:18.470 align:start position:0% Reserve mechanism but to also uh have some<00:19:16.080> freedom<00:19:16.440> to<00:19:16.679> move<00:19:16.799> it<00:19:16.980> around<00:19:17.160> right<00:19:17.760> and 00:19:18.470 --> 00:19:18.480 align:start position:0% some freedom to move it around right and 00:19:18.480 --> 00:19:20.690 align:start position:0% some freedom to move it around right and so<00:19:18.720> that's<00:19:18.960> exactly<00:19:19.440> what<00:19:19.799> uniswap<00:19:20.400> V3 00:19:20.690 --> 00:19:20.700 align:start position:0% so that's exactly what uniswap V3 00:19:20.700 --> 00:19:24.110 align:start position:0% so that's exactly what uniswap V3 provides<00:19:21.360> so<00:19:22.140> uniswot<00:19:22.740> V3<00:19:23.039> utilizes<00:19:23.760> these 00:19:24.110 --> 00:19:24.120 align:start position:0% provides so uniswot V3 utilizes these 00:19:24.120 --> 00:19:27.350 align:start position:0% provides so uniswot V3 utilizes these virtual<00:19:24.360> reserves<00:19:24.900> but<00:19:25.860> it<00:19:26.580> basically<00:19:26.880> says 00:19:27.350 --> 00:19:27.360 align:start position:0% virtual reserves but it basically says 00:19:27.360 --> 00:19:30.770 align:start position:0% virtual reserves but it basically says each<00:19:28.160> individual<00:19:29.160> liquidity<00:19:29.640> provider<00:19:30.179> can 00:19:30.770 --> 00:19:30.780 align:start position:0% each individual liquidity provider can 00:19:30.780 --> 00:19:33.169 align:start position:0% each individual liquidity provider can choose<00:19:31.140> their<00:19:31.440> own<00:19:31.620> price<00:19:32.039> range<00:19:32.460> and 00:19:33.169 --> 00:19:33.179 align:start position:0% choose their own price range and 00:19:33.179 --> 00:19:35.150 align:start position:0% choose their own price range and implicitly<00:19:34.080> amplification<00:19:34.799> and 00:19:35.150 --> 00:19:35.160 align:start position:0% implicitly amplification and 00:19:35.160 --> 00:19:37.970 align:start position:0% implicitly amplification and concentration<00:19:35.760> as<00:19:36.059> well 00:19:37.970 --> 00:19:37.980 align:start position:0% concentration as well 00:19:37.980 --> 00:19:40.669 align:start position:0% concentration as well um<00:19:38.039> and<00:19:38.700> so<00:19:38.880> this<00:19:39.299> is<00:19:39.480> super<00:19:40.080> interesting<00:19:40.500> to 00:19:40.669 --> 00:19:40.679 align:start position:0% um and so this is super interesting to 00:19:40.679 --> 00:19:43.850 align:start position:0% um and so this is super interesting to me<00:19:40.860> because<00:19:41.179> it's<00:19:42.179> essentially<00:19:42.860> Outsourcing 00:19:43.850 --> 00:19:43.860 align:start position:0% me because it's essentially Outsourcing 00:19:43.860 --> 00:19:47.270 align:start position:0% me because it's essentially Outsourcing this<00:19:44.640> hard<00:19:44.940> problem<00:19:45.240> of<00:19:45.780> deciding<00:19:46.320> where<00:19:47.100> to 00:19:47.270 --> 00:19:47.280 align:start position:0% this hard problem of deciding where to 00:19:47.280 --> 00:19:49.010 align:start position:0% this hard problem of deciding where to provide<00:19:47.520> liquidity<00:19:48.000> to<00:19:48.419> the<00:19:48.600> liquidity 00:19:49.010 --> 00:19:49.020 align:start position:0% provide liquidity to the liquidity 00:19:49.020 --> 00:19:51.650 align:start position:0% provide liquidity to the liquidity providers<00:19:49.500> themselves<00:19:49.919> so<00:19:50.820> the<00:19:51.000> mechanism<00:19:51.360> no 00:19:51.650 --> 00:19:51.660 align:start position:0% providers themselves so the mechanism no 00:19:51.660 --> 00:19:53.150 align:start position:0% providers themselves so the mechanism no longer<00:19:51.960> has<00:19:52.200> to<00:19:52.320> solve<00:19:52.740> this<00:19:52.980> problem 00:19:53.150 --> 00:19:53.160 align:start position:0% longer has to solve this problem 00:19:53.160 --> 00:19:56.029 align:start position:0% longer has to solve this problem specifically<00:19:53.880> but<00:19:54.500> instead<00:19:55.500> it's<00:19:55.740> simply 00:19:56.029 --> 00:19:56.039 align:start position:0% specifically but instead it's simply 00:19:56.039 --> 00:19:57.890 align:start position:0% specifically but instead it's simply General<00:19:56.280> enough<00:19:56.640> to<00:19:57.000> let<00:19:57.179> liquidity 00:19:57.890 --> 00:19:57.900 align:start position:0% General enough to let liquidity 00:19:57.900 --> 00:20:02.049 align:start position:0% General enough to let liquidity providers<00:19:58.380> decide<00:19:59.100> what<00:19:59.520> risk<00:19:59.960> and<00:20:00.960> reward 00:20:02.049 --> 00:20:02.059 align:start position:0% providers decide what risk and reward 00:20:02.059 --> 00:20:05.090 align:start position:0% providers decide what risk and reward payoffs<00:20:03.059> they<00:20:03.240> want<00:20:03.419> to<00:20:03.600> take<00:20:04.320> by<00:20:04.740> deciding 00:20:05.090 --> 00:20:05.100 align:start position:0% payoffs they want to take by deciding 00:20:05.100 --> 00:20:08.450 align:start position:0% payoffs they want to take by deciding where<00:20:05.280> to<00:20:05.400> concentrate<00:20:05.760> the<00:20:05.940> liquidity 00:20:08.450 --> 00:20:08.460 align:start position:0% 00:20:08.460 --> 00:20:09.169 align:start position:0% um 00:20:09.169 --> 00:20:09.179 align:start position:0% um 00:20:09.179 --> 00:20:11.690 align:start position:0% um now<00:20:09.960> the<00:20:10.380> there<00:20:10.799> is<00:20:10.980> not<00:20:11.039> a<00:20:11.220> trading<00:20:11.520> function 00:20:11.690 --> 00:20:11.700 align:start position:0% now the there is not a trading function 00:20:11.700 --> 00:20:13.909 align:start position:0% now the there is not a trading function for<00:20:11.880> this<00:20:12.059> one<00:20:12.120> as<00:20:12.299> you<00:20:12.480> probably<00:20:12.600> noticed<00:20:13.020> uh 00:20:13.909 --> 00:20:13.919 align:start position:0% for this one as you probably noticed uh 00:20:13.919 --> 00:20:15.590 align:start position:0% for this one as you probably noticed uh it's<00:20:14.100> hard<00:20:14.280> to<00:20:14.460> appreciate<00:20:14.880> the<00:20:15.240> complexity 00:20:15.590 --> 00:20:15.600 align:start position:0% it's hard to appreciate the complexity 00:20:15.600 --> 00:20:17.750 align:start position:0% it's hard to appreciate the complexity that<00:20:15.840> uniswot<00:20:16.380> V3<00:20:16.679> can<00:20:16.980> provide<00:20:17.280> with<00:20:17.580> a 00:20:17.750 --> 00:20:17.760 align:start position:0% that uniswot V3 can provide with a 00:20:17.760 --> 00:20:19.970 align:start position:0% that uniswot V3 can provide with a trading<00:20:18.059> function<00:20:18.500> instead<00:20:19.500> what<00:20:19.799> you're 00:20:19.970 --> 00:20:19.980 align:start position:0% trading function instead what you're 00:20:19.980 --> 00:20:23.810 align:start position:0% trading function instead what you're seeing<00:20:20.340> is<00:20:20.820> a<00:20:21.240> liquidity<00:20:21.720> graph<00:20:22.080> so 00:20:23.810 --> 00:20:23.820 align:start position:0% seeing is a liquidity graph so 00:20:23.820 --> 00:20:24.350 align:start position:0% seeing is a liquidity graph so um 00:20:24.350 --> 00:20:24.360 align:start position:0% um 00:20:24.360 --> 00:20:26.930 align:start position:0% um on<00:20:24.780> the<00:20:24.960> x-axis<00:20:25.500> is<00:20:26.039> essentially<00:20:26.460> the<00:20:26.700> price 00:20:26.930 --> 00:20:26.940 align:start position:0% on the x-axis is essentially the price 00:20:26.940 --> 00:20:30.470 align:start position:0% on the x-axis is essentially the price and<00:20:27.660> on<00:20:27.900> the<00:20:28.020> y-axis<00:20:28.679> is<00:20:29.220> the<00:20:29.760> liquidity<00:20:30.179> at 00:20:30.470 --> 00:20:30.480 align:start position:0% and on the y-axis is the liquidity at 00:20:30.480 --> 00:20:34.070 align:start position:0% and on the y-axis is the liquidity at any<00:20:30.660> given<00:20:31.080> point<00:20:31.679> which<00:20:32.100> is<00:20:32.220> essentially<00:20:33.080> how 00:20:34.070 --> 00:20:34.080 align:start position:0% any given point which is essentially how 00:20:34.080 --> 00:20:36.590 align:start position:0% any given point which is essentially how flat<00:20:34.380> the<00:20:34.740> trading<00:20:35.100> function<00:20:35.340> is<00:20:35.520> there<00:20:35.760> and 00:20:36.590 --> 00:20:36.600 align:start position:0% flat the trading function is there and 00:20:36.600 --> 00:20:38.150 align:start position:0% flat the trading function is there and you<00:20:36.720> can<00:20:36.780> see<00:20:36.960> for<00:20:37.200> reference<00:20:37.559> just<00:20:37.799> for<00:20:37.980> fun 00:20:38.150 --> 00:20:38.160 align:start position:0% you can see for reference just for fun 00:20:38.160 --> 00:20:40.190 align:start position:0% you can see for reference just for fun we<00:20:38.340> have<00:20:38.400> uniswot<00:20:38.880> V2<00:20:39.240> which<00:20:39.539> is<00:20:39.660> just<00:20:39.840> flat 00:20:40.190 --> 00:20:40.200 align:start position:0% we have uniswot V2 which is just flat 00:20:40.200 --> 00:20:41.810 align:start position:0% we have uniswot V2 which is just flat because<00:20:40.559> it's<00:20:40.799> uniform 00:20:41.810 --> 00:20:41.820 align:start position:0% because it's uniform 00:20:41.820 --> 00:20:44.390 align:start position:0% because it's uniform whereas<00:20:42.539> uniswot<00:20:43.020> V3<00:20:43.320> has<00:20:43.620> this<00:20:43.799> very<00:20:43.980> complex 00:20:44.390 --> 00:20:44.400 align:start position:0% whereas uniswot V3 has this very complex 00:20:44.400 --> 00:20:46.250 align:start position:0% whereas uniswot V3 has this very complex shape<00:20:44.880> because<00:20:45.179> this<00:20:45.539> is<00:20:45.720> sort<00:20:45.900> of<00:20:46.020> the 00:20:46.250 --> 00:20:46.260 align:start position:0% shape because this is sort of the 00:20:46.260 --> 00:20:48.169 align:start position:0% shape because this is sort of the combination<00:20:46.799> of<00:20:47.700> all<00:20:47.880> these<00:20:48.059> different 00:20:48.169 --> 00:20:48.179 align:start position:0% combination of all these different 00:20:48.179 --> 00:20:50.810 align:start position:0% combination of all these different ranges<00:20:48.780> uh<00:20:49.679> that<00:20:49.860> all<00:20:49.980> these<00:20:50.160> uniswap<00:20:50.580> V3 00:20:50.810 --> 00:20:50.820 align:start position:0% ranges uh that all these uniswap V3 00:20:50.820 --> 00:20:52.370 align:start position:0% ranges uh that all these uniswap V3 liquidity<00:20:51.299> providers<00:20:51.720> are<00:20:52.020> providing 00:20:52.370 --> 00:20:52.380 align:start position:0% liquidity providers are providing 00:20:52.380 --> 00:20:53.930 align:start position:0% liquidity providers are providing liquidity<00:20:52.919> in 00:20:53.930 --> 00:20:53.940 align:start position:0% liquidity in 00:20:53.940 --> 00:20:55.490 align:start position:0% liquidity in and<00:20:54.299> so 00:20:55.490 --> 00:20:55.500 align:start position:0% and so 00:20:55.500 --> 00:20:56.990 align:start position:0% and so um as<00:20:55.919> everyone's<00:20:56.280> probably<00:20:56.400> aware<00:20:56.640> this<00:20:56.820> has 00:20:56.990 --> 00:20:57.000 align:start position:0% um as everyone's probably aware this has 00:20:57.000 --> 00:21:00.710 align:start position:0% um as everyone's probably aware this has become<00:20:57.419> extremely<00:20:58.320> popular<00:20:58.679> and<00:20:59.580> uh<00:21:00.360> is 00:21:00.710 --> 00:21:00.720 align:start position:0% become extremely popular and uh is 00:21:00.720 --> 00:21:03.590 align:start position:0% become extremely popular and uh is responsible<00:21:01.200> for<00:21:01.740> a<00:21:02.340> huge<00:21:02.580> proportion<00:21:03.120> of<00:21:03.419> the 00:21:03.590 --> 00:21:03.600 align:start position:0% responsible for a huge proportion of the 00:21:03.600 --> 00:21:06.289 align:start position:0% responsible for a huge proportion of the D5<00:21:03.960> trading<00:21:04.740> volume<00:21:04.919> because<00:21:05.880> of<00:21:06.120> how 00:21:06.289 --> 00:21:06.299 align:start position:0% D5 trading volume because of how 00:21:06.299 --> 00:21:10.430 align:start position:0% D5 trading volume because of how powerful<00:21:06.720> this<00:21:07.080> this<00:21:07.380> mechanism<00:21:07.860> is 00:21:10.430 --> 00:21:10.440 align:start position:0% 00:21:10.440 --> 00:21:13.730 align:start position:0% so<00:21:10.919> that<00:21:11.100> concludes<00:21:11.580> all<00:21:12.000> the<00:21:12.240> uh<00:21:13.020> specific 00:21:13.730 --> 00:21:13.740 align:start position:0% so that concludes all the uh specific 00:21:13.740 --> 00:21:16.490 align:start position:0% so that concludes all the uh specific amm<00:21:14.340> types<00:21:14.700> I'm<00:21:15.000> going<00:21:15.179> to<00:21:15.240> cover<00:21:15.419> today 00:21:16.490 --> 00:21:16.500 align:start position:0% amm types I'm going to cover today 00:21:16.500 --> 00:21:17.029 align:start position:0% amm types I'm going to cover today um 00:21:17.029 --> 00:21:17.039 align:start position:0% um 00:21:17.039 --> 00:21:19.010 align:start position:0% um to<00:21:17.520> close<00:21:17.700> things<00:21:17.940> out<00:21:18.120> I'd<00:21:18.419> like<00:21:18.539> to<00:21:18.720> briefly 00:21:19.010 --> 00:21:19.020 align:start position:0% to close things out I'd like to briefly 00:21:19.020 --> 00:21:22.430 align:start position:0% to close things out I'd like to briefly cover<00:21:19.200> how<00:21:20.120> we<00:21:21.120> can<00:21:21.299> build<00:21:21.480> on<00:21:21.660> top<00:21:21.840> of<00:21:22.140> these 00:21:22.430 --> 00:21:22.440 align:start position:0% cover how we can build on top of these 00:21:22.440 --> 00:21:25.190 align:start position:0% cover how we can build on top of these great<00:21:22.740> on-chain<00:21:23.220> mechanisms<00:21:23.900> and<00:21:24.900> leverage 00:21:25.190 --> 00:21:25.200 align:start position:0% great on-chain mechanisms and leverage 00:21:25.200 --> 00:21:29.149 align:start position:0% great on-chain mechanisms and leverage off-chain<00:21:25.799> computation<00:21:26.400> as<00:21:26.940> well<00:21:27.059> to<00:21:28.159> improve 00:21:29.149 --> 00:21:29.159 align:start position:0% off-chain computation as well to improve 00:21:29.159 --> 00:21:31.490 align:start position:0% off-chain computation as well to improve upon<00:21:29.400> them<00:21:29.520> even<00:21:29.700> more 00:21:31.490 --> 00:21:31.500 align:start position:0% upon them even more 00:21:31.500 --> 00:21:34.250 align:start position:0% upon them even more so<00:21:32.159> the<00:21:32.940> first<00:21:33.059> thing<00:21:33.360> I<00:21:33.539> want<00:21:33.659> to<00:21:33.780> cover<00:21:33.900> are 00:21:34.250 --> 00:21:34.260 align:start position:0% so the first thing I want to cover are 00:21:34.260 --> 00:21:37.250 align:start position:0% so the first thing I want to cover are requests<00:21:34.740> for<00:21:34.860> quote<00:21:35.220> systems<00:21:35.760> so<00:21:36.659> I<00:21:36.900> alluded 00:21:37.250 --> 00:21:37.260 align:start position:0% requests for quote systems so I alluded 00:21:37.260 --> 00:21:39.049 align:start position:0% requests for quote systems so I alluded to<00:21:37.380> this<00:21:37.559> earlier<00:21:37.919> and<00:21:38.280> essentially<00:21:38.640> what 00:21:39.049 --> 00:21:39.059 align:start position:0% to this earlier and essentially what 00:21:39.059 --> 00:21:40.610 align:start position:0% to this earlier and essentially what this<00:21:39.299> is 00:21:40.610 --> 00:21:40.620 align:start position:0% this is 00:21:40.620 --> 00:21:41.270 align:start position:0% this is um 00:21:41.270 --> 00:21:41.280 align:start position:0% um 00:21:41.280 --> 00:21:43.750 align:start position:0% um is<00:21:41.940> it<00:21:42.299> allows 00:21:43.750 --> 00:21:43.760 align:start position:0% is it allows 00:21:43.760 --> 00:21:47.990 align:start position:0% is it allows the<00:21:44.760> market<00:21:45.539> maker<00:21:46.080> to<00:21:46.679> do<00:21:47.520> completely 00:21:47.990 --> 00:21:48.000 align:start position:0% the market maker to do completely 00:21:48.000 --> 00:21:51.110 align:start position:0% the market maker to do completely off-chain<00:21:48.539> pricing<00:21:49.020> right<00:21:49.799> so<00:21:50.340> you<00:21:51.059> can 00:21:51.110 --> 00:21:51.120 align:start position:0% off-chain pricing right so you can 00:21:51.120 --> 00:21:53.450 align:start position:0% off-chain pricing right so you can either<00:21:51.299> leverage<00:21:51.720> a<00:21:52.020> real-time<00:21:52.380> Oracle<00:21:52.980> or 00:21:53.450 --> 00:21:53.460 align:start position:0% either leverage a real-time Oracle or 00:21:53.460 --> 00:21:55.669 align:start position:0% either leverage a real-time Oracle or you<00:21:53.700> can<00:21:53.880> leverage<00:21:54.539> actual<00:21:55.080> traditional 00:21:55.669 --> 00:21:55.679 align:start position:0% you can leverage actual traditional 00:21:55.679 --> 00:21:57.409 align:start position:0% you can leverage actual traditional professional<00:21:56.220> market<00:21:56.460> makers<00:21:56.940> that<00:21:57.240> are 00:21:57.409 --> 00:21:57.419 align:start position:0% professional market makers that are 00:21:57.419 --> 00:22:00.289 align:start position:0% professional market makers that are constantly<00:21:57.960> manipulating<00:21:58.500> the<00:21:58.740> order<00:21:58.919> book 00:22:00.289 --> 00:22:00.299 align:start position:0% constantly manipulating the order book 00:22:00.299 --> 00:22:03.529 align:start position:0% constantly manipulating the order book um<00:22:00.780> and<00:22:01.320> you<00:22:01.500> can<00:22:01.559> then<00:22:01.740> provide<00:22:02.159> an<00:22:02.700> API<00:22:03.179> that 00:22:03.529 --> 00:22:03.539 align:start position:0% um and you can then provide an API that 00:22:03.539 --> 00:22:06.169 align:start position:0% um and you can then provide an API that anyone<00:22:03.900> can<00:22:04.080> hit<00:22:04.260> and<00:22:05.039> they<00:22:05.280> can<00:22:05.400> get<00:22:05.640> a<00:22:05.940> quote 00:22:06.169 --> 00:22:06.179 align:start position:0% anyone can hit and they can get a quote 00:22:06.179 --> 00:22:09.169 align:start position:0% anyone can hit and they can get a quote and<00:22:06.600> a<00:22:06.840> signature<00:22:07.320> with<00:22:07.740> that<00:22:07.919> quote<00:22:08.640> and<00:22:09.059> you 00:22:09.169 --> 00:22:09.179 align:start position:0% and a signature with that quote and you 00:22:09.179 --> 00:22:11.149 align:start position:0% and a signature with that quote and you can<00:22:09.299> then<00:22:09.480> take<00:22:09.840> that<00:22:10.200> quote<00:22:10.440> and<00:22:10.679> signature 00:22:11.149 --> 00:22:11.159 align:start position:0% can then take that quote and signature 00:22:11.159 --> 00:22:13.330 align:start position:0% can then take that quote and signature on<00:22:11.760> chain 00:22:13.330 --> 00:22:13.340 align:start position:0% on chain 00:22:13.340 --> 00:22:16.730 align:start position:0% on chain and<00:22:14.340> you<00:22:14.520> can<00:22:14.640> then<00:22:14.880> execute<00:22:15.480> it<00:22:15.720> and<00:22:16.320> compose 00:22:16.730 --> 00:22:16.740 align:start position:0% and you can then execute it and compose 00:22:16.740 --> 00:22:19.789 align:start position:0% and you can then execute it and compose it<00:22:16.919> with<00:22:17.220> all<00:22:17.400> these<00:22:17.580> other<00:22:17.700> amms<00:22:18.419> as<00:22:18.659> well 00:22:19.789 --> 00:22:19.799 align:start position:0% it with all these other amms as well 00:22:19.799 --> 00:22:21.950 align:start position:0% it with all these other amms as well um<00:22:20.280> and<00:22:20.760> so<00:22:20.880> this<00:22:21.120> becomes<00:22:21.480> a<00:22:21.720> powerful 00:22:21.950 --> 00:22:21.960 align:start position:0% um and so this becomes a powerful 00:22:21.960 --> 00:22:24.950 align:start position:0% um and so this becomes a powerful mechanism<00:22:22.440> where<00:22:22.740> we<00:22:22.980> can<00:22:23.100> leverage<00:22:23.600> uh<00:22:24.600> this 00:22:24.950 --> 00:22:24.960 align:start position:0% mechanism where we can leverage uh this 00:22:24.960 --> 00:22:27.049 align:start position:0% mechanism where we can leverage uh this these<00:22:25.320> off-chain<00:22:25.799> resources<00:22:26.340> which<00:22:26.760> often 00:22:27.049 --> 00:22:27.059 align:start position:0% these off-chain resources which often 00:22:27.059 --> 00:22:30.049 align:start position:0% these off-chain resources which often allow<00:22:27.299> for<00:22:27.480> more<00:22:27.659> efficient<00:22:27.960> pricing 00:22:30.049 --> 00:22:30.059 align:start position:0% allow for more efficient pricing 00:22:30.059 --> 00:22:32.330 align:start position:0% allow for more efficient pricing um<00:22:30.179> while<00:22:30.840> still<00:22:31.140> maintaining<00:22:31.620> a<00:22:32.039> lot<00:22:32.280> of 00:22:32.330 --> 00:22:32.340 align:start position:0% um while still maintaining a lot of 00:22:32.340 --> 00:22:34.310 align:start position:0% um while still maintaining a lot of these<00:22:32.580> on-chain<00:22:33.120> benefits<00:22:33.600> that<00:22:33.840> we<00:22:34.020> get<00:22:34.080> from 00:22:34.310 --> 00:22:34.320 align:start position:0% these on-chain benefits that we get from 00:22:34.320 --> 00:22:37.430 align:start position:0% these on-chain benefits that we get from amms<00:22:35.299> and<00:22:36.299> so<00:22:36.419> we<00:22:36.600> have<00:22:36.720> a<00:22:36.840> few<00:22:36.960> examples<00:22:37.260> there 00:22:37.430 --> 00:22:37.440 align:start position:0% amms and so we have a few examples there 00:22:37.440 --> 00:22:39.350 align:start position:0% amms and so we have a few examples there one<00:22:37.679> is<00:22:37.799> Clipper<00:22:38.100> RFQ<00:22:38.580> which<00:22:38.820> I<00:22:39.000> mentioned 00:22:39.350 --> 00:22:39.360 align:start position:0% one is Clipper RFQ which I mentioned 00:22:39.360 --> 00:22:41.450 align:start position:0% one is Clipper RFQ which I mentioned which<00:22:40.080> leverages<00:22:40.380> that<00:22:40.559> off<00:22:40.740> chain<00:22:40.919> Oracle 00:22:41.450 --> 00:22:41.460 align:start position:0% which leverages that off chain Oracle 00:22:41.460 --> 00:22:43.610 align:start position:0% which leverages that off chain Oracle hash<00:22:42.059> flow<00:22:42.419> is<00:22:42.539> another<00:22:42.659> one<00:22:42.960> that<00:22:43.260> leverages 00:22:43.610 --> 00:22:43.620 align:start position:0% hash flow is another one that leverages 00:22:43.620 --> 00:22:46.370 align:start position:0% hash flow is another one that leverages these<00:22:44.360> traditional<00:22:45.360> essentially<00:22:46.140> Market 00:22:46.370 --> 00:22:46.380 align:start position:0% these traditional essentially Market 00:22:46.380 --> 00:22:48.950 align:start position:0% these traditional essentially Market making<00:22:46.679> tactics<00:22:47.220> and<00:22:47.520> provides<00:22:47.940> that<00:22:48.179> as<00:22:48.600> a 00:22:48.950 --> 00:22:48.960 align:start position:0% making tactics and provides that as a 00:22:48.960 --> 00:22:51.950 align:start position:0% making tactics and provides that as a RFQ<00:22:49.860> API<00:22:50.400> that<00:22:50.640> can<00:22:50.760> then<00:22:50.940> be<00:22:51.059> leveraged<00:22:51.480> on 00:22:51.950 --> 00:22:51.960 align:start position:0% RFQ API that can then be leveraged on 00:22:51.960 --> 00:22:54.470 align:start position:0% RFQ API that can then be leveraged on chain 00:22:54.470 --> 00:22:54.480 align:start position:0% 00:22:54.480 --> 00:22:57.710 align:start position:0% so<00:22:55.200> with<00:22:55.440> all<00:22:55.620> of<00:22:55.740> that<00:22:55.799> in<00:22:55.980> mind<00:22:56.159> uh 00:22:57.710 --> 00:22:57.720 align:start position:0% so with all of that in mind uh 00:22:57.720 --> 00:22:59.690 align:start position:0% so with all of that in mind uh I'd<00:22:58.200> like<00:22:58.320> to<00:22:58.440> close<00:22:58.620> things<00:22:58.860> out<00:22:59.039> by<00:22:59.280> asking 00:22:59.690 --> 00:22:59.700 align:start position:0% I'd like to close things out by asking 00:22:59.700 --> 00:23:01.430 align:start position:0% I'd like to close things out by asking the<00:23:00.059> question<00:23:00.240> now<00:23:00.539> from<00:23:00.780> the<00:23:00.900> Trader's<00:23:01.260> Point 00:23:01.430 --> 00:23:01.440 align:start position:0% the question now from the Trader's Point 00:23:01.440 --> 00:23:02.810 align:start position:0% the question now from the Trader's Point of<00:23:01.620> View 00:23:02.810 --> 00:23:02.820 align:start position:0% of View 00:23:02.820 --> 00:23:05.330 align:start position:0% of View um how<00:23:03.360> do<00:23:03.480> we<00:23:03.659> actually<00:23:04.020> navigate<00:23:04.799> this 00:23:05.330 --> 00:23:05.340 align:start position:0% um how do we actually navigate this 00:23:05.340 --> 00:23:07.669 align:start position:0% um how do we actually navigate this complex<00:23:05.580> landscape<00:23:06.120> and<00:23:06.480> figure<00:23:06.600> out<00:23:06.900> where 00:23:07.669 --> 00:23:07.679 align:start position:0% complex landscape and figure out where 00:23:07.679 --> 00:23:09.830 align:start position:0% complex landscape and figure out where and<00:23:07.919> how<00:23:08.100> much<00:23:08.340> to<00:23:08.580> trade 00:23:09.830 --> 00:23:09.840 align:start position:0% and how much to trade 00:23:09.840 --> 00:23:12.350 align:start position:0% and how much to trade right<00:23:10.020> and<00:23:10.500> just<00:23:10.620> to<00:23:10.799> summarize 00:23:12.350 --> 00:23:12.360 align:start position:0% right and just to summarize 00:23:12.360 --> 00:23:14.510 align:start position:0% right and just to summarize um<00:23:12.419> what<00:23:12.900> we've<00:23:13.080> covered<00:23:13.440> here<00:23:13.679> are<00:23:14.280> many 00:23:14.510 --> 00:23:14.520 align:start position:0% um what we've covered here are many 00:23:14.520 --> 00:23:16.190 align:start position:0% um what we've covered here are many different<00:23:14.760> types<00:23:15.059> of<00:23:15.120> amms<00:23:15.720> which<00:23:15.840> all<00:23:15.960> have 00:23:16.190 --> 00:23:16.200 align:start position:0% different types of amms which all have 00:23:16.200 --> 00:23:18.169 align:start position:0% different types of amms which all have different<00:23:16.380> purposes 00:23:18.169 --> 00:23:18.179 align:start position:0% different purposes 00:23:18.179 --> 00:23:19.190 align:start position:0% different purposes um 00:23:19.190 --> 00:23:19.200 align:start position:0% um 00:23:19.200 --> 00:23:21.649 align:start position:0% um each<00:23:19.740> type<00:23:19.919> of<00:23:20.039> amm<00:23:20.520> is<00:23:20.760> actually<00:23:20.940> implemented 00:23:21.649 --> 00:23:21.659 align:start position:0% each type of amm is actually implemented 00:23:21.659 --> 00:23:24.230 align:start position:0% each type of amm is actually implemented many<00:23:21.960> many<00:23:22.140> times<00:23:22.380> on<00:23:22.740> chain<00:23:23.240> sometimes 00:23:24.230 --> 00:23:24.240 align:start position:0% many many times on chain sometimes 00:23:24.240 --> 00:23:25.730 align:start position:0% many many times on chain sometimes thousands<00:23:24.720> of<00:23:24.840> times<00:23:25.020> in<00:23:25.320> the<00:23:25.500> case<00:23:25.559> of 00:23:25.730 --> 00:23:25.740 align:start position:0% thousands of times in the case of 00:23:25.740 --> 00:23:28.130 align:start position:0% thousands of times in the case of uniswot<00:23:26.159> V2<00:23:26.520> so<00:23:27.000> you<00:23:27.419> have<00:23:27.539> many<00:23:27.720> choices 00:23:28.130 --> 00:23:28.140 align:start position:0% uniswot V2 so you have many choices 00:23:28.140 --> 00:23:30.110 align:start position:0% uniswot V2 so you have many choices there<00:23:28.380> as<00:23:28.559> well 00:23:30.110 --> 00:23:30.120 align:start position:0% there as well 00:23:30.120 --> 00:23:32.990 align:start position:0% there as well uh<00:23:30.840> it<00:23:31.140> turns<00:23:31.380> out<00:23:31.500> since<00:23:31.919> these<00:23:32.700> trading 00:23:32.990 --> 00:23:33.000 align:start position:0% uh it turns out since these trading 00:23:33.000 --> 00:23:34.970 align:start position:0% uh it turns out since these trading functions<00:23:33.360> are<00:23:33.720> always<00:23:33.900> adjusting<00:23:34.620> their 00:23:34.970 --> 00:23:34.980 align:start position:0% functions are always adjusting their 00:23:34.980 --> 00:23:37.909 align:start position:0% functions are always adjusting their prices<00:23:35.159> as<00:23:35.640> you<00:23:35.760> trade<00:23:36.000> through<00:23:36.179> them<00:23:36.559> uh<00:23:37.559> for 00:23:37.909 --> 00:23:37.919 align:start position:0% prices as you trade through them uh for 00:23:37.919 --> 00:23:40.850 align:start position:0% prices as you trade through them uh for any<00:23:38.159> direct<00:23:38.460> pair<00:23:38.880> of<00:23:39.000> assets<00:23:39.500> the<00:23:40.500> best<00:23:40.620> place 00:23:40.850 --> 00:23:40.860 align:start position:0% any direct pair of assets the best place 00:23:40.860 --> 00:23:43.610 align:start position:0% any direct pair of assets the best place to<00:23:41.100> trade<00:23:41.340> is<00:23:41.880> actually<00:23:42.120> usually<00:23:42.659> a 00:23:43.610 --> 00:23:43.620 align:start position:0% to trade is actually usually a 00:23:43.620 --> 00:23:46.130 align:start position:0% to trade is actually usually a combination<00:23:44.039> of<00:23:44.520> different<00:23:44.760> uh<00:23:45.600> liquidity 00:23:46.130 --> 00:23:46.140 align:start position:0% combination of different uh liquidity 00:23:46.140 --> 00:23:48.169 align:start position:0% combination of different uh liquidity pools<00:23:46.559> instead<00:23:47.039> of<00:23:47.100> just<00:23:47.280> picking<00:23:47.640> one<00:23:47.820> so 00:23:48.169 --> 00:23:48.179 align:start position:0% pools instead of just picking one so 00:23:48.179 --> 00:23:50.510 align:start position:0% pools instead of just picking one so your<00:23:48.419> problem<00:23:48.539> is<00:23:48.720> not<00:23:48.900> just<00:23:49.080> picking<00:23:49.500> uh<00:23:50.280> one 00:23:50.510 --> 00:23:50.520 align:start position:0% your problem is not just picking uh one 00:23:50.520 --> 00:23:52.730 align:start position:0% your problem is not just picking uh one place<00:23:50.760> it's<00:23:51.059> actually<00:23:51.440> picking<00:23:52.440> some 00:23:52.730 --> 00:23:52.740 align:start position:0% place it's actually picking some 00:23:52.740 --> 00:23:55.850 align:start position:0% place it's actually picking some arbitrary<00:23:53.520> combination<00:23:54.179> right 00:23:55.850 --> 00:23:55.860 align:start position:0% arbitrary combination right 00:23:55.860 --> 00:23:59.210 align:start position:0% arbitrary combination right and<00:23:56.280> if<00:23:56.400> all<00:23:56.580> that<00:23:56.760> wasn't<00:23:56.940> enough<00:23:57.240> uh 00:23:59.210 --> 00:23:59.220 align:start position:0% and if all that wasn't enough uh 00:23:59.220 --> 00:24:02.450 align:start position:0% and if all that wasn't enough uh the<00:23:59.820> best<00:24:00.000> trading<00:24:00.840> price<00:24:01.080> is<00:24:01.620> often<00:24:02.039> actually 00:24:02.450 --> 00:24:02.460 align:start position:0% the best trading price is often actually 00:24:02.460 --> 00:24:05.330 align:start position:0% the best trading price is often actually routing<00:24:02.880> through<00:24:03.000> other<00:24:03.120> tokens<00:24:03.600> as<00:24:03.780> well 00:24:05.330 --> 00:24:05.340 align:start position:0% routing through other tokens as well 00:24:05.340 --> 00:24:05.930 align:start position:0% routing through other tokens as well um 00:24:05.930 --> 00:24:05.940 align:start position:0% um 00:24:05.940 --> 00:24:08.870 align:start position:0% um and<00:24:06.600> so<00:24:06.840> the<00:24:07.260> answer<00:24:07.380> to<00:24:07.559> all<00:24:07.799> this<00:24:07.980> uh<00:24:08.580> as<00:24:08.700> you 00:24:08.870 --> 00:24:08.880 align:start position:0% and so the answer to all this uh as you 00:24:08.880 --> 00:24:10.909 align:start position:0% and so the answer to all this uh as you may<00:24:09.000> guess<00:24:09.179> is<00:24:09.539> of<00:24:09.720> course<00:24:09.840> Dex<00:24:10.320> aggregators 00:24:10.909 --> 00:24:10.919 align:start position:0% may guess is of course Dex aggregators 00:24:10.919 --> 00:24:13.549 align:start position:0% may guess is of course Dex aggregators right<00:24:11.580> we<00:24:11.880> have<00:24:12.000> a<00:24:12.240> very<00:24:12.659> hard<00:24:12.840> optimization 00:24:13.549 --> 00:24:13.559 align:start position:0% right we have a very hard optimization 00:24:13.559 --> 00:24:17.750 align:start position:0% right we have a very hard optimization problem<00:24:14.240> and<00:24:15.240> we<00:24:15.840> can<00:24:16.080> essentially<00:24:16.760> uh 00:24:17.750 --> 00:24:17.760 align:start position:0% problem and we can essentially uh 00:24:17.760 --> 00:24:20.870 align:start position:0% problem and we can essentially uh leverage<00:24:18.240> off-chain<00:24:19.080> computation 00:24:20.870 --> 00:24:20.880 align:start position:0% leverage off-chain computation 00:24:20.880 --> 00:24:22.789 align:start position:0% leverage off-chain computation um<00:24:20.940> to<00:24:21.240> solve<00:24:21.480> this<00:24:21.659> problem<00:24:21.840> and<00:24:22.380> provide 00:24:22.789 --> 00:24:22.799 align:start position:0% um to solve this problem and provide 00:24:22.799 --> 00:24:26.210 align:start position:0% um to solve this problem and provide again<00:24:23.760> uh<00:24:24.659> a<00:24:25.080> transaction<00:24:25.500> that<00:24:26.039> still 00:24:26.210 --> 00:24:26.220 align:start position:0% again uh a transaction that still 00:24:26.220 --> 00:24:28.010 align:start position:0% again uh a transaction that still maintains<00:24:26.700> a<00:24:26.880> lot<00:24:27.000> of<00:24:27.120> the<00:24:27.240> great<00:24:27.539> qualities 00:24:28.010 --> 00:24:28.020 align:start position:0% maintains a lot of the great qualities 00:24:28.020 --> 00:24:30.610 align:start position:0% maintains a lot of the great qualities of<00:24:28.500> on-chain 00:24:30.610 --> 00:24:30.620 align:start position:0% of on-chain 00:24:30.620 --> 00:24:33.950 align:start position:0% of on-chain amms<00:24:31.620> by<00:24:32.039> still<00:24:32.340> allowing<00:24:32.820> for<00:24:33.299> Atomic 00:24:33.950 --> 00:24:33.960 align:start position:0% amms by still allowing for Atomic 00:24:33.960 --> 00:24:37.310 align:start position:0% amms by still allowing for Atomic execution<00:24:34.500> self-custody<00:24:35.600> uh<00:24:36.600> still<00:24:36.900> you 00:24:37.310 --> 00:24:37.320 align:start position:0% execution self-custody uh still you 00:24:37.320 --> 00:24:40.310 align:start position:0% execution self-custody uh still you still<00:24:37.440> have<00:24:37.679> protection<00:24:38.159> from<00:24:38.640> slippage 00:24:40.310 --> 00:24:40.320 align:start position:0% still have protection from slippage 00:24:40.320 --> 00:24:40.909 align:start position:0% still have protection from slippage um 00:24:40.909 --> 00:24:40.919 align:start position:0% um 00:24:40.919 --> 00:24:42.830 align:start position:0% um and<00:24:41.460> so<00:24:41.580> this<00:24:41.760> is<00:24:41.880> an<00:24:42.120> incredibly<00:24:42.419> powerful 00:24:42.830 --> 00:24:42.840 align:start position:0% and so this is an incredibly powerful 00:24:42.840 --> 00:24:43.850 align:start position:0% and so this is an incredibly powerful mechanism 00:24:43.850 --> 00:24:43.860 align:start position:0% mechanism 00:24:43.860 --> 00:24:47.630 align:start position:0% mechanism uh<00:24:44.640> and<00:24:44.880> I<00:24:45.000> have<00:24:45.059> an<00:24:45.179> example<00:24:45.539> of<00:24:46.260> uh 00:24:47.630 --> 00:24:47.640 align:start position:0% uh and I have an example of uh 00:24:47.640 --> 00:24:50.210 align:start position:0% uh and I have an example of uh a<00:24:48.480> particular<00:24:48.780> trade<00:24:49.140> you<00:24:49.320> can<00:24:49.500> execute<00:24:49.860> with 00:24:50.210 --> 00:24:50.220 align:start position:0% a particular trade you can execute with 00:24:50.220 --> 00:24:53.630 align:start position:0% a particular trade you can execute with Odo<00:24:50.700> specifically<00:24:51.679> now<00:24:52.679> with<00:24:52.980> otos<00:24:53.280> we 00:24:53.630 --> 00:24:53.640 align:start position:0% Odo specifically now with otos we 00:24:53.640 --> 00:24:56.990 align:start position:0% Odo specifically now with otos we visualize<00:24:54.299> these<00:24:55.020> uh<00:24:55.799> aggregation<00:24:56.400> paths 00:24:56.990 --> 00:24:57.000 align:start position:0% visualize these uh aggregation paths 00:24:57.000 --> 00:24:59.630 align:start position:0% visualize these uh aggregation paths with<00:24:57.299> what's<00:24:57.659> called<00:24:57.840> a<00:24:58.020> Sankey<00:24:58.440> diagram<00:24:58.799> and 00:24:59.630 --> 00:24:59.640 align:start position:0% with what's called a Sankey diagram and 00:24:59.640 --> 00:25:02.330 align:start position:0% with what's called a Sankey diagram and it's<00:24:59.760> essentially<00:25:00.120> showing<00:25:00.539> the<00:25:00.900> flow<00:25:01.340> from 00:25:02.330 --> 00:25:02.340 align:start position:0% it's essentially showing the flow from 00:25:02.340 --> 00:25:03.710 align:start position:0% it's essentially showing the flow from the<00:25:02.520> left<00:25:02.640> hand<00:25:02.820> side<00:25:03.000> to<00:25:03.299> the<00:25:03.419> right<00:25:03.539> hand 00:25:03.710 --> 00:25:03.720 align:start position:0% the left hand side to the right hand 00:25:03.720 --> 00:25:06.110 align:start position:0% the left hand side to the right hand side<00:25:03.960> through<00:25:04.740> all<00:25:05.220> these<00:25:05.400> other<00:25:05.520> assets<00:25:05.940> and 00:25:06.110 --> 00:25:06.120 align:start position:0% side through all these other assets and 00:25:06.120 --> 00:25:08.570 align:start position:0% side through all these other assets and all<00:25:06.299> these<00:25:06.419> other<00:25:06.539> dexes<00:25:07.220> this<00:25:08.220> one<00:25:08.340> in 00:25:08.570 --> 00:25:08.580 align:start position:0% all these other dexes this one in 00:25:08.580 --> 00:25:09.770 align:start position:0% all these other dexes this one in particular 00:25:09.770 --> 00:25:09.780 align:start position:0% particular 00:25:09.780 --> 00:25:12.830 align:start position:0% particular actually<00:25:10.320> has<00:25:10.620> about<00:25:10.860> 40<00:25:11.280> different<00:25:11.700> swaps<00:25:12.360> so 00:25:12.830 --> 00:25:12.840 align:start position:0% actually has about 40 different swaps so 00:25:12.840 --> 00:25:15.070 align:start position:0% actually has about 40 different swaps so 40<00:25:13.440> different<00:25:13.740> decks<00:25:14.280> integration 00:25:15.070 --> 00:25:15.080 align:start position:0% 40 different decks integration 00:25:15.080 --> 00:25:17.810 align:start position:0% 40 different decks integration interactions<00:25:16.080> that<00:25:16.799> you<00:25:16.980> can<00:25:17.039> execute<00:25:17.520> all 00:25:17.810 --> 00:25:17.820 align:start position:0% interactions that you can execute all 00:25:17.820 --> 00:25:19.789 align:start position:0% interactions that you can execute all atomically 00:25:19.789 --> 00:25:19.799 align:start position:0% atomically 00:25:19.799 --> 00:25:20.630 align:start position:0% atomically um 00:25:20.630 --> 00:25:20.640 align:start position:0% um 00:25:20.640 --> 00:25:23.930 align:start position:0% um this<00:25:21.299> one<00:25:21.480> is<00:25:21.840> also<00:25:22.260> showing<00:25:22.980> multiple<00:25:23.580> assets 00:25:23.930 --> 00:25:23.940 align:start position:0% this one is also showing multiple assets 00:25:23.940 --> 00:25:25.909 align:start position:0% this one is also showing multiple assets being<00:25:24.240> traded<00:25:24.600> at<00:25:24.720> once<00:25:25.020> so<00:25:25.320> this<00:25:25.559> is<00:25:25.679> another 00:25:25.909 --> 00:25:25.919 align:start position:0% being traded at once so this is another 00:25:25.919 --> 00:25:29.630 align:start position:0% being traded at once so this is another benefit<00:25:26.700> that<00:25:27.120> we<00:25:27.240> can<00:25:27.360> get<00:25:27.600> from<00:25:28.559> uh<00:25:29.220> sort<00:25:29.520> of 00:25:29.630 --> 00:25:29.640 align:start position:0% benefit that we can get from uh sort of 00:25:29.640 --> 00:25:31.970 align:start position:0% benefit that we can get from uh sort of combining<00:25:30.539> these<00:25:31.080> amms<00:25:31.620> like<00:25:31.799> building 00:25:31.970 --> 00:25:31.980 align:start position:0% combining these amms like building 00:25:31.980 --> 00:25:34.909 align:start position:0% combining these amms like building blocks<00:25:32.520> into<00:25:33.000> a<00:25:33.659> bigger<00:25:33.960> transaction<00:25:34.440> to 00:25:34.909 --> 00:25:34.919 align:start position:0% blocks into a bigger transaction to 00:25:34.919 --> 00:25:38.029 align:start position:0% blocks into a bigger transaction to execute<00:25:35.279> a<00:25:35.520> given<00:25:35.760> trade 00:25:38.029 --> 00:25:38.039 align:start position:0% execute a given trade 00:25:38.039 --> 00:25:38.930 align:start position:0% execute a given trade um 00:25:38.930 --> 00:25:38.940 align:start position:0% um 00:25:38.940 --> 00:25:40.850 align:start position:0% um and<00:25:39.720> so 00:25:40.850 --> 00:25:40.860 align:start position:0% and so 00:25:40.860 --> 00:25:43.310 align:start position:0% and so yeah<00:25:41.400> that's<00:25:41.700> aggregators<00:25:42.419> very<00:25:42.960> powerful 00:25:43.310 --> 00:25:43.320 align:start position:0% yeah that's aggregators very powerful 00:25:43.320 --> 00:25:45.470 align:start position:0% yeah that's aggregators very powerful and<00:25:44.039> sort<00:25:44.340> of<00:25:44.460> an<00:25:44.580> example<00:25:44.880> again<00:25:45.120> of 00:25:45.470 --> 00:25:45.480 align:start position:0% and sort of an example again of 00:25:45.480 --> 00:25:49.370 align:start position:0% and sort of an example again of leveraging<00:25:46.020> this<00:25:46.980> off-chain<00:25:47.520> execution 00:25:49.370 --> 00:25:49.380 align:start position:0% leveraging this off-chain execution 00:25:49.380 --> 00:25:50.210 align:start position:0% leveraging this off-chain execution um 00:25:50.210 --> 00:25:50.220 align:start position:0% um 00:25:50.220 --> 00:25:54.710 align:start position:0% um for<00:25:51.260> uh<00:25:52.260> even<00:25:52.559> better<00:25:52.919> experience<00:25:53.880> over<00:25:54.240> these 00:25:54.710 --> 00:25:54.720 align:start position:0% for uh even better experience over these 00:25:54.720 --> 00:25:57.830 align:start position:0% for uh even better experience over these amazing<00:25:55.080> amm<00:25:55.679> mechanisms 00:25:57.830 --> 00:25:57.840 align:start position:0% amazing amm mechanisms 00:25:57.840 --> 00:26:00.470 align:start position:0% amazing amm mechanisms and<00:25:58.440> so<00:25:58.679> that<00:25:59.039> concludes<00:25:59.400> things 00:26:00.470 --> 00:26:00.480 align:start position:0% and so that concludes things 00:26:00.480 --> 00:26:02.810 align:start position:0% and so that concludes things um<00:26:00.539> a<00:26:00.960> few<00:26:01.080> final<00:26:01.260> notes<00:26:01.740> uh<00:26:02.520> the<00:26:02.640> parent 00:26:02.810 --> 00:26:02.820 align:start position:0% um a few final notes uh the parent 00:26:02.820 --> 00:26:05.029 align:start position:0% um a few final notes uh the parent company<00:26:03.059> of<00:26:03.360> odos<00:26:03.779> semiotic<00:26:04.500> Labs<00:26:04.860> is 00:26:05.029 --> 00:26:05.039 align:start position:0% company of odos semiotic Labs is 00:26:05.039 --> 00:26:06.649 align:start position:0% company of odos semiotic Labs is actually<00:26:05.220> giving<00:26:05.460> a<00:26:05.940> couple<00:26:06.059> other<00:26:06.240> talks 00:26:06.649 --> 00:26:06.659 align:start position:0% actually giving a couple other talks 00:26:06.659 --> 00:26:09.049 align:start position:0% actually giving a couple other talks today<00:26:06.779> so<00:26:07.200> uh<00:26:08.100> I<00:26:08.279> encourage<00:26:08.520> you<00:26:08.640> to<00:26:08.820> check 00:26:09.049 --> 00:26:09.059 align:start position:0% today so uh I encourage you to check 00:26:09.059 --> 00:26:11.690 align:start position:0% today so uh I encourage you to check those<00:26:09.480> out<00:26:09.720> they're<00:26:09.960> related<00:26:10.320> to<00:26:10.799> artificial 00:26:11.690 --> 00:26:11.700 align:start position:0% those out they're related to artificial 00:26:11.700 --> 00:26:13.490 align:start position:0% those out they're related to artificial intelligence<00:26:12.179> and<00:26:12.480> cryptography<00:26:13.260> work 00:26:13.490 --> 00:26:13.500 align:start position:0% intelligence and cryptography work 00:26:13.500 --> 00:26:15.430 align:start position:0% intelligence and cryptography work related<00:26:14.279> to 00:26:15.430 --> 00:26:15.440 align:start position:0% related to 00:26:15.440 --> 00:26:19.430 align:start position:0% related to our<00:26:16.440> work<00:26:16.559> as<00:26:16.799> core<00:26:17.159> devs<00:26:17.580> for<00:26:17.820> the<00:26:17.940> graph 00:26:19.430 --> 00:26:19.440 align:start position:0% our work as core devs for the graph 00:26:19.440 --> 00:26:22.549 align:start position:0% our work as core devs for the graph um<00:26:20.039> and<00:26:20.700> we<00:26:20.940> are<00:26:21.120> also<00:26:21.539> hiring<00:26:22.080> so<00:26:22.260> you<00:26:22.440> can 00:26:22.549 --> 00:26:22.559 align:start position:0% um and we are also hiring so you can 00:26:22.559 --> 00:26:24.529 align:start position:0% um and we are also hiring so you can feel<00:26:22.799> free<00:26:22.919> to<00:26:23.100> reach<00:26:23.400> out<00:26:23.520> if<00:26:23.880> any<00:26:24.059> of<00:26:24.299> that 00:26:24.529 --> 00:26:24.539 align:start position:0% feel free to reach out if any of that 00:26:24.539 --> 00:26:27.769 align:start position:0% feel free to reach out if any of that sounds<00:26:25.140> interesting 00:26:27.769 --> 00:26:27.779 align:start position:0% sounds interesting 00:26:27.779 --> 00:26:30.220 align:start position:0% sounds interesting um<00:26:27.840> so<00:26:28.260> yeah<00:26:28.440> that's<00:26:28.799> time 00:26:30.220 --> 00:26:30.230 align:start position:0% um so yeah that's time 00:26:30.230 --> 00:26:35.730 align:start position:0% um so yeah that's time [Applause]