How Latency Affects Price Discovery

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Long-term like i said i want microsoft to trade on amms very very interesting and how does latency come into effect all this right you get a block every 12 seconds on a theory of whereas binance is quoting you every microsecond so how does that effect price discovery again. You have a few players who are really really skilled at executing really really fast which means if you're not one of those players um you're just at an inherent disadvantage, he says. He adds: "We have some interesting ideas about kind of changing that dynamic"

Doug Colkitt joins us to discuss how AMMs can limit toxic flow, maximize capital efficiency and become primary venue for price discovery. We cover the design of Ambient, the benefits of a single contract DEX, how dynamic fees benefit LPs, strategies to reduce toxic flow, balancing the incentives of makers vs takers, why Unsiwap dominates and more!

And as usual, we start the episode with our analyst bullpen to discuss Polygon's ZK announcement, the Cosmos Hub's momentum, SAP's crypto announcement, the convergence of rollups and appchain design,

- -

Timestamps:

(00:00) Introduction

(00:58) Hot Seat/Cool Throne

(36:20) Interview Start: The AMM Landscape

(44:19) Ambient’s Single Contract DEX

(47:54) How Lower Gas Fees Impact Toxic Flow

(50:17) Ambient’s Dynamic Fee Design

(58:54) The Uniswap v4 Announcement

(59:56) Balancing Incentives for Makers vs Takers

(1:04:20) Surplus Collateral Positions and Gasless Trades

(1:08:41) Will Retail Flow Default to DEX Aggregators?

(1:09:56) Ambient’s Governance Structure and Hooks

(1:16:00) Knockout Liquidity

(1:20:14) On-Chain Price Discovery and Latency

(1:28:42) Why is Uniswap Crushing Everyone Else?

- -

Follow Doug: https://twitter.com/0xdoug

Follow Sam: https://twitter.com/swmartin19

Follow Dan: https://twitter.com/smyyguy

Follow David: https://twitter.com/EffortCapital

Follow Westie: https://twitter.com/WestieCapital

Follow Blockworks Research: https://twitter.com/blockworksres

Subscribe on YouTube: https://bit.ly/3foDS38

Subscribe on Apple: https://apple.co/3SNhUEt

Subscribe on Spotify: https://spoti.fi/3NlP1hA

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

- -

Today’s episode is brought to you by the Atom Accelerator, now offering grants to build out the ATOM economic zone! It's the perfect time to build with Cosmos and join the thriving ATOM ecosystem. With Interchain Security live, and the power of IBC connecting the interchain, builders are flocking to Cosmos. Join the ranks of Neutron, Lido, Astroport, Gitcoin, Mars and numerous other projects harnessing Cosmos’ leading infrastructure. Discover how to secure a grant from the Atom Accelerator by visiting https://www.atomaccelerator.com/ today!

- -

Resources:

Ambient

https://us.ambient.finance/

https://twitter.com/ambient_finance

SAP's USDC payment announcement

https://blockworks.co/news/sap-touts-blockchain-solution-payments

Dualty's Cosmos Hub RS proposal

https://forum.cosmos.network/t/proposal-draft-launch-duality-on-replicated-security/10932

Modular vs Monolithic Twitter thread

https://twitter.com/digitalmustafa/status/1672301896584040449

- -

Check out Blockworks Research today! Research, data, governance, tokenomics, and models – now, all in one place

Blockworks Research: https://www.blockworksresearch.com/

Free Daily Newsletter: https://blockworks.co/newsletter

- -

Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Dan, Sam, and our guests may hold positions in the companies, funds, or projects discussed.