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> automated market makers Are you claiming that this is an innovation associated with crypto? Can you elaborate or clarify, as the case may be?
by ycombobreaker 5y ago
> automated market makers
Are you claiming that this is an innovation associated with crypto? Can you elaborate or clarify, as the case may be?
- deleted 5y ago[deleted]
- sjtindell 5y agoThe decentralized exchanges are essentially just automated market makers, but in a different sense than existing automated market makers like Citadel. The contract deals more with balancing pools than a traditional market maker who just forwards orders to an exchange or matches it themselves.
- ycombobreaker 5y agoApologies for the delayed response. What you're describing is not novel to crypto. Citadel is a wholesaler, but plenty of other participants quote firm bid/offer prices on real exchanges (where the wholesaler sends their exhaust). In the US equity space there is RegNMS that seeks to model the marketplace as a single entity, so it's a bad example; but there are plenty of other examples of non-fungible products that trade more similarly to the crypto markets. For example, there are gold markets across the world with slightly different quality standards, units of measurement, delivery standards (or cash settlement rules), expiration dates, etc.