All you ever wanted to know about Automated Market Makers (and more)

Vortrag von PD Dr. Marcus Wunsch

Datum: 21.05.26  Zeit: 12.00 - 13.00  Raum: Y27H12

In this talk, I will provide a systematic introduction to Decentralized Finance (DeFi) with a particular focus on Automated Market Makers (AMMs), a prominent class of Decentralized Exchanges that facilitate trading without centralized limit-order books. I will discuss how the mechanics of AMMs naturally connect liquidity provision to volatility exposure and portfolio rebalancing. Building on this framework, I will examine the sources of adverse selection (e.g., Impermanent Loss) faced by liquidity providers and present hedging strategies designed to manage these risks or to achieve market‑neutral positions.
The results are based on joint work with Masaaki Fukasawa and Basile Maire.