Most centralized exchanges and even a few decentralized exchanges are based on the order book model. It’s important to understand how an order book works so you can make more informed decisions on when and how to trade stocks, bonds, currencies, and of course, cryptocurrencies.
— benblute (@benblute) January 2, 2022
A market maker is any person or entity who provides liquidity to a market. They are an essential participant in any type of exchange. In this thread, I will use order book exchanges to explain the basics of market makers.
— benblute (@benblute) January 12, 2022
Uniswap was the first constant product market maker on the Ethereum blockchain. It popularized the use of AMMs in DeFi, and it's still one of the largest DEXs to this day. In this thread, I will use constant product market makers as a way to introduce you to the world of AMMs.
— benblute (@benblute) October 26, 2021
When the spot price of two assets in an AMM differs from the actual price (as determined by a more liquid market like a centralized exchange), it creates an opportunity to profit off of a swap. This is known as arbitrage and I'll explain how it works in this thread.
— benblute (@benblute) December 11, 2021
The term "impermanent loss" is confusing for two reasons:
— benblute (@benblute) December 21, 2021
1) Impermanent loss can be permanent
2) Impermanent loss does not necessarily mean you lost money
I'll explain both of these points in this thread
Feel free to suggest more ideas on Twitter