Author: cleanshave

Market Positioning and Trading Path Analysis in AMM Systems

The success of an Automated Market Maker (AMM) systems increasingly depends on the strategic positioning of liquidity pools and the efficiency of trading paths. Understanding where a liquidity pool fits in a broader trading ecosystem, and how trades flow through direct and indirect routes, is essential for optimizing returns and minimizing volatility. This post explores […]

Understanding Price Impact and Slippage in Liquidity Pool Dynamics

Automated Market Makers (AMMs) have become central to the functioning of liquidity across networks like Stellar. One of the most important aspects of AMM-based trading is understanding how price impact and slippage affect trades and liquidity pool performance. This post explores how these dynamics work, why they matter, and how they influence returns for liquidity […]

Potential Methodologies for Calculating Optimal Pool Ratios

In decentralized liquidity systems, the ratio of assets allocated across pools can significantly influence earning efficiency, market stability, and price sensitivity. This post explores a data-driven approach to optimizing pool ratios using core performance metrics, dynamic adjustments, and system-aware constraints. The goal is to propose a speculative but structured framework for calibrating pool weights in […]

Alice: Onboarding

Welcome to Alice, an open and permisionless protocol that was built to provide steady returns against the US dollar. Simplifying the process of growing your savings. She is an experimental alternative to current savings options, operating autonomously and without the need for human input or management. Alice works 24/7 to grow the value held in […]

Key Insights into Liquidity Pool Dynamics

Liquidity pools are the backbone of decentralized trading platforms, but their success depends on more than just how much capital they hold. A deeper look at pool behavior reveals that the relationship between pool size, volume, and efficiency is complex, and getting it right requires a careful balance of several interrelated factors. I have identified […]

Price Volatility in AMM Liquidity Pools

Automated Market Makers (AMMs) play a central role in decentralized finance, but they also introduce unique behaviors in price volatility, especially when liquidity is unevenly distributed across trading pairs. By exploring both individual pool dynamics and system-wide liquidity effects, we can gain a clearer picture of how volatility emerges and propagates through AMM-based markets. Individual […]

The Winter Pilgrimage

The winter pilgrimage begins on New Year’s Day at the Southernmost Point of the United States in Key West, but I was already a day behind, and had only made it as far south as Marathon when I saw the first familiar faces hiking north.   Longshot, hiking with Peg Leg on her audacious border-to-border calendar […]

Deflationary Compounding: Capturing Value from Market Volatility

I’ve watched digital markets long enough to notice something most people overlook: volatility itself can be a resource. What Is Deflationary Compounding? Deflationary compounding is a financial mechanism that systematically reduces token supply to increase token value through the mathematical certainty of automated market makers (AMMs). Think of it like a hydroelectric dam. The dam […]

Finishing the Pinhoti

I finished the Pinhoti Trail before the end of 2024, spending my last night in the shelter on Weogufka Creek, listening to the water slip over rocks, the sound as familiar as my own breath. At the base of Flagg Mountain, I contemplated my need for significant alone time in order to process emotions and […]