Dynamic exponent market maker: personalized portfolio manager and one pool to trade them all

Decentralized exchange (DEX) platforms such as Uniswap and Balancer operate on several pools where each pool contains two or more cryptocurrencies and constitutes direct trading pairs. The drawbacks here are that liquidity provision requires the contribution of tokens in a specific proportion, and trading may require hopping between pools, hence increasing the transaction fee and gas fee. We propose an automated market maker (AMM) protocol where liquidity providers (LPs) can deposit any amount of tokens into the pool. The protocol preserves the proportion of tokens by total value at the time of deposit and can be seen as a personalized self-balancing portfolio manager. In addition, since the invariant function is dynamic, all exchange pairs are executed from a single composite pool. Nevertheless, the scheme is vulnerable to flash loan attacks and must be used in conjunction with preventive measures.

Authors

Institutions

Publication Details

Journal
Blockchain Research and Applications
Published
2025-01-23
DOI
https://doi.org/10.1016/j.bcra.2025.100274
Citations
1
Primary Topic
Economic theories and models
Type
article
Field-Weighted Citation Impact
3.13
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Dynamic exponent market maker: personalized portfolio manager and one pool to trade them all

Wittawat Kositwattanarerk
1 citations
Blockchain Research and Applications
Economic theories and models
3.13
article

Dynamic exponent market maker: personalized portfolio manager and one pool to trade them all

Wittawat Kositwattanarerk
article en
1 citations

Abstract

Decentralized exchange (DEX) platforms such as Uniswap and Balancer operate on several pools where each pool contains two or more cryptocurrencies and constitutes direct trading pairs. The drawbacks here are that liquidity provision requires the contribution of tokens in a specific proportion, and trading may require hopping between pools, hence increasing the transaction fee and gas fee. We propose an automated market maker (AMM) protocol where liquidity providers (LPs) can deposit any amount of tokens into the pool. The protocol preserves the proportion of tokens by total value at the time of deposit and can be seen as a personalized self-balancing portfolio manager. In addition, since the invariant function is dynamic, all exchange pairs are executed from a single composite pool. Nevertheless, the scheme is vulnerable to flash loan attacks and must be used in conjunction with preventive measures.

Blockchain Research and ApplicationsVol. 6(3)
Mahidol University (TH), Thailand Center of Excellence in Physics (TH), Office of the Higher Education Commission (TH)
Openalex Percentile: Top 10%
Economic theories and models
3.13
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.