Automated Market Makers Are Dead By Cointelegraph

Automated market makers are dead

Billions of dollars poured into decentralized exchange protocols based on the automated market maker (AMM), which initiates network effects by inducing liquidity with project tokens, thus creating an autonomous ecosystem of traders and yield producers.

This mechanism allowed decentralized exchanges (DEX) to compete for the first time with centralized counterparts, such as Coinbase, which can afford to use cash from their balance sheets to pay for user acquisition (for example, via registration and referral bonuses). As a result, AMMs have been hailed as the cornerstone of decentralized finance (DeFi), spawning multiple permutations and triggering the trend towards yield farming that has helped attract billions of US dollars into smart contracts.

Antoine Foy is the CEO and co-founder of Qredo Ltd, where he leads the development of Qredo’s decentralized digital asset management infrastructure. Foy is a digital veteran with over 20 years of experience building cutting-edge technology companies backed by VC. Its first startup was acquired by IBM (NYSE 🙂 six months after its IPO, and then he joined the founding team of BroadBase Software, which went from $ 0 to $ 125 million in revenue in two years before going public.

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