> it is preferrable to the centralized variety that traditional finance uses
Citation needed :) . Seriously, crypto needs to do better than just assert that ownerless decentralization is instantly better. Traditional dark pools work just fine once you accept that with the right model, a single fill can tell you loads about the order book.
> What is a constant-product DEX?
That's the model used by Uniswap and almost every other major swap-based DEX. MEV as described in the TFA is preying largely on these DEXes and people conclude that it's the fault of the constant product model, or of being transparent. It's not: it's the fault of gas making it impossibly expensive to use the most basic tool in execution, splitting your order into smaller trades and applying logic to when you choose to trade.
I'm actually kind of a constant-product maximalist because it shows you CAN have a public, transparent market, which is something genuinely new to finance. IMO the last thing the world needs are old-fashioned order books and dark pools on blockchain.
On the basis that the cryptography remaining unbroken and the protocol-genetated incentives creating a validator set too large to coopt are more reliable trust assumptions than the trusted third party controlling a traditional dark pool being competent and trustworthy.
>>It's not: it's the fault of gas making it impossibly expensive to use the most basic tool in execution, splitting your order into smaller trades and applying logic to when you choose to trade.
Citation needed :) . Seriously, crypto needs to do better than just assert that ownerless decentralization is instantly better. Traditional dark pools work just fine once you accept that with the right model, a single fill can tell you loads about the order book.
> What is a constant-product DEX?
That's the model used by Uniswap and almost every other major swap-based DEX. MEV as described in the TFA is preying largely on these DEXes and people conclude that it's the fault of the constant product model, or of being transparent. It's not: it's the fault of gas making it impossibly expensive to use the most basic tool in execution, splitting your order into smaller trades and applying logic to when you choose to trade.
I'm actually kind of a constant-product maximalist because it shows you CAN have a public, transparent market, which is something genuinely new to finance. IMO the last thing the world needs are old-fashioned order books and dark pools on blockchain.