2020
DOI: 10.2139/ssrn.3715398
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Uniswap and the Rise of the Decentralized Exchange

Abstract: Despite blockchain based digital assets trading since 2009, there has been a functional gap between (1) on-chain transactions and (2) trust based centralized exchanges. This is now bridged with the success of Uniswap, a decentralized exchange. Uniswap's constant product automated market maker enables the trading of blockchain token without relying on market makers, bids or asks. This overturns centuries of practice in financial markets, and constitutes a building block of a new decentralized financial system. … Show more

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Cited by 16 publications
(8 citation statements)
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“…Moreover, smart contracts platforms such as Ethereum [49] enable DApps and Decentralized Finance (DeFi) solutions offering financial instruments in a decentralized way without middlemen. DeFi solutions in the Fintech sector include decentralized exchanges [50], lending and borrowing [51], derivatives [52], and stable coins [53]. DeFi tools could be integrated into CI 4.0 to decentralize the traditional financial ecosystem of the industry and offer innovative solutions for funding, transacting, lending, borrowing, and trading tokenized assets.…”
Section: Project Lifecycle Data Classification For Bcdtsmentioning
confidence: 99%
“…Moreover, smart contracts platforms such as Ethereum [49] enable DApps and Decentralized Finance (DeFi) solutions offering financial instruments in a decentralized way without middlemen. DeFi solutions in the Fintech sector include decentralized exchanges [50], lending and borrowing [51], derivatives [52], and stable coins [53]. DeFi tools could be integrated into CI 4.0 to decentralize the traditional financial ecosystem of the industry and offer innovative solutions for funding, transacting, lending, borrowing, and trading tokenized assets.…”
Section: Project Lifecycle Data Classification For Bcdtsmentioning
confidence: 99%
“…It is capable of searching every possible route of the listed tokens and finding the maximum profit route. The authors [39] introduced an automated market marker that aims to bridge the gap between on-chain transactions and trust-based decentralized exchanges by applying ARDL and VAR on Uniswap V2 exchange containing 154 days of Ether-Tether trading data. The model is robust and reserves the ratio of Ether and USDT, which moves towards the model equilibrium at 99.9% statistical significance.…”
Section: Publication Overviewmentioning
confidence: 99%
“…It is capable of searching every possible route of the listed tokens and finding the maximum profit route. [47] introduced an automated market marker that aims to bridge the gap between on-chain transactions and trust-based decentralized exchanges by applying ARDL and VAR on Uniswap V2 exchange containing 154 days of Ether-Tether trading data. The model is robust and reserves the ratio of Ether and USDT, which moves towards the model equilibrium at 99.9% statistical significance.…”
Section: Publication Overviewmentioning
confidence: 99%