Exploring new automated market maker designs

Uniswap was the first automated market maker (AMM) with clear product-market fit and usage growth — and since its launch, different teams have tried to fix its limitations for traders and liquidity providers. Instead of a traditional order book, AMMs traders and market makers deposit and withdraw assets from liquidity pools. Prices for trade execution are determined by the function of the relative amount of assets in the pool.

Today, Uniswap’s market share among DEXs is 63.3%, from a total volume of $23.3 billion in the past 30 days. The three largest DEXs by volume are AMMs, and the model accounts for more than 93% market share.