Only the autodidacts are free | prev. eng @monad, founding eng @thirdweb

Joined October 2020
167 Photos and videos
once again realizing that I'm not a visual learner I need explanations in full sentences that build up intuition, where each statement logically follows from the previous one, then show me the equations, and recall how the equations are but a compact description of it all
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xy = k from first principles krishang.blog/post/uniswap-i…
Say, we live in a world where we buy oranges in exchange for apples, and vice-versa. A vendor has 100 oranges and 20 apples in his basket. We're buying oranges from him and we're paying him in apples. How many oranges is one apple worth?
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Say, we live in a world where we buy oranges in exchange for apples, and vice-versa. A vendor has 100 oranges and 20 apples in his basket. We're buying oranges from him and we're paying him in apples. How many oranges is one apple worth?
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This makes it prohibitively expensive and loss-making for a customer to make irregularly large purchases that, essentially, the vendor’s basket is not prepared to handle This is how a vendor can let the market always bring the basket's ratio back to market rate. fin. [29/n]
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And this is how AMMs work.
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