Today we will be discussing the second part of the Uniswap paper [1]. If you found yesterday’s episode a bit dry, worry not. This one is more fun and economics, the mathematics stuff is mostly over. We are now moving on to the economics implications, and those are very interesting. Also honorable mentions of Sushiswap [3].
I am currently working quite heavily on formalising my understanding of Uniswap and Uniswap-style pools like the infamous Sushiswap pool that provided a fair amount of drama over the weekend. So instead of a news podcast today a short podcast on those two papers. The first one is simply a collection of important formulas [1], and the second one is a series of charts showing how Uniswap pools prices change with the volume [2].
Today’s podcast is with Jeff Bandman [1], principal at Bandman Advisors [2,3] and an esteemed colleague at University of Nicosia where he is teaching a course on blockchain regulations [4]. He is an expert on regulations, in particular in the US, and today we will be talking about SEC’s exciting move to extend the definition of accredited investors [5,6,7]
The Japanse messaging giant LINE, creator of the Line friends, launches a blockchain development platform called LINE Blockchain Developers, and a crypto wallet called BITMAX.
In a true man-bites-dog story [1], Korea’s largest blockchain firm ICON [2] now offers KYC services to Shinhan Bank, Korea’s second largest bank [3] as Coin Telegraph reports.
Today’s podcast is on @danrobinson’s [4] medium post “Ethereum is a dark forest” [1] (the reference being of course the famous book from the Three Body Problem series [2,3]) where he describes how in Ethereum’s mempool everyone raising the head gets sniped.
I started writing a paper on the Uniswap protocol, and in particularly how it imposes a bleed on its liquidity providers, akin to the bleed option traders with negative Gamma experience. The full paper is here but below is the non-technical summary and conclusion.