September 29, 2021, 8:59AM EDT
• 9 min read

A look at the evolution of on-chain market making

Quick take

  • After massive inflows last summer, liquidity in on-chain DEX’s has struggled to sustain further growth. 
  • AMM’s are currently in a state where passive strategies aren’t sufficiently profitable to attract additional liquidity, and on-chain bandwidth remains prohibitive for traditional order books.  
  • The space between basic AMM’s and central limit order books remains largely unexplored and could contain an avenue to further enhance on-chain liquidity.

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