4 ms·

Those things are definitely interesting from a technical point of view, but they solve problems that are uniquely created by crypto, and are not really needed o

Those things are definitely interesting from a technical point of view, but they solve problems that are uniquely created by crypto, and are not really needed outside of it. For example AMMs are not needed, just use an order book. Stablecoins? Just use currency. DAOs? A corporation.

SV_BubbleTime 4y ago
>Those things are definitely interesting from a technical point of view, but they solve problems that are uniquely created by crypto, and are not really needed outside of it. Well, I mean, this isn't necessarily a bad thing. Lots of new tech brings new problems and new solutions that wouldn't apply at all to old tech. We had very little need for super precision honed turbines in 1900. We sure are happy to have them now though. I look forward to the crypto crash as much as any "paper hands hater". But I can't dislike it for being new or novel.
DennisP 4y ago
An advantage of the AMM is that anyone can get paid for providing liquidity.
- quickthrower2 4y ago
  Except you can lose money providing liquidity
  - DennisP 4y ago
    Sure, there's some risk. It's not free money.
hopfog 4y ago
I implemented an AMM in my multiplayer game (nothing to do with cryptocurrencies) for players to trade one resource for another. They can always buy/sell into the AMM even at low activity as long as there's liquidity. It's also a fun mechanic for players where they can invest their surplus and get a cut of every trade.
ianmiers 4y ago
Fun fact, AMMs were considered well before cryptocurrency. " The most popular automated market maker used in Internet prediction markets is Hanson’s logarithmic market scoring rule (LMSR), an automated market maker with particularly desirable properties [Hanson 2003, 2007]. The LMSR is used by a number of companies including Inkling Markets, Consensus Point, Yahoo!, Microsoft, and the large-scale non-commercial Gates Hillman Prediction Market at Carnegie Mellon [Othman and Sandholm 2010a]." From https://www.cs.cmu.edu/~sandholm/liquidity-sensitive%20automated%20market%20maker.teac.pdf https://www.cs.cmu.edu/~sandholm/liquidity-sensitive%20autom...

SV_BubbleTime 4y ago

>Those things are definitely interesting from a technical point of view, but they solve problems that are uniquely created by crypto, and are not really needed outside of it. Well, I mean, this isn't necessarily a bad thing. Lots of new tech brings new problems and new solutions that wouldn't apply at all to old tech. We had very little need for super precision honed turbines in 1900. We sure are happy to have them now though. I look forward to the crypto crash as much as any "paper hands hater". But I can't dislike it for being new or novel.

DennisP 4y ago

An advantage of the AMM is that anyone can get paid for providing liquidity.

quickthrower2 4y ago
Except you can lose money providing liquidity
- DennisP 4y ago
  Sure, there's some risk. It's not free money.

hopfog 4y ago

I implemented an AMM in my multiplayer game (nothing to do with cryptocurrencies) for players to trade one resource for another. They can always buy/sell into the AMM even at low activity as long as there's liquidity. It's also a fun mechanic for players where they can invest their surplus and get a cut of every trade.

ianmiers 4y ago

Fun fact, AMMs were considered well before cryptocurrency. " The most popular automated market maker used in Internet prediction markets is Hanson’s logarithmic market scoring rule (LMSR), an automated market maker with particularly desirable properties [Hanson 2003, 2007]. The LMSR is used by a number of companies including Inkling Markets, Consensus Point, Yahoo!, Microsoft, and the large-scale non-commercial Gates Hillman Prediction Market at Carnegie Mellon [Othman and Sandholm 2010a]." From https://www.cs.cmu.edu/~sandholm/liquidity-sensitive%20automated%20market%20maker.teac.pdf https://www.cs.cmu.edu/~sandholm/liquidity-sensitive%20autom...