Episode 173: Building Private AMMs with Guillermo Angeris

This week, Anna (https://twitter.com/AnnaRRose) & Tarun (https://twitter.com/tarunchitra) take an in-depth look into AMMs with Guillermo Angeris (https://twitter.com/GuilleAngeris), a PhD student in Stanford who co-authored a number of papers on fundamental AMM properties. They chat about how his work on Optimization Theory and Inverse Design can be applied to a DeFi context, as well as his most recent paper deals with privacy in AMMs, effectively demonstrating how superficial attempts at making a private AMM are doomed.
During the conversation, Anna, Tarun and Guillermo chat about why AMMs today are so revolutionary and unique in the financial world, and why their success can be explained by optimization theory and convexity. But AMMs also have a number of shortcomings like front-running and impermanent loss, where Guillermo’s PhD work may just help find the solution.
Here are a few links for this episode:
Zero Knowledge Episode 153 (https://www.zeroknowledge.fm/153), Monsters in the Mempool with Dan Robinson
Zero Knowledge Episode 168 (https://www.zeroknowledge.fm/168), Flashbots with Phil Daian and Stephane Gosseline
Guillermo’s latest paper (https://web.stanford.edu/~guillean/papers/cfmm-privacy.pdf) on the challenges of implementing private AMMs
Guillermo and Tarun’s first paper (https://web.stanford.edu/~guillean/papers/uniswap_analysis.pdf) on Uniswap and Constant Function Market Makers, formalizing their practical qualities.
Other papers by Guillermo and Tarun analyzing the optimal fee (https://web.stanford.edu/~guillean/papers/g3m-optimal-fee.pdf) and bonding curve (https://web.stanford.edu/~guillean/papers/cfmm-curvature.pdf) of CFMMs.
Zero Knowledge Episode 103 (https://www.zeroknowledge.fm/103), Exploring VDFs with Joseph Bonneau
Guillermo’s papers on optimization problems (https://web.stanford.edu/~guillean/papers/min_sum_clipped_convex.pdf) and inverse design (https://web.stanford.edu/~guillean/papers/invdes-review-paper.pdf).
Check out the Cosmos Privacy & ZKP Showcase -> https://hopin.com/events/cosmos-privacy-zkp-showcase
And the Zero Knowledge Gitcoin Grant -> https://gitcoin.co/grants/329/zero-knowledge-podcast
Thank you to this week’s sponsor, Aave (https://aave.com).
Aave is an open source, decentralised non-custodial liquidity protocol on Ethereum.
With Aave, users can participate as depositors meaning they provide liquidity to earn a passive income. or they can also act as borrowers to borrow in an overcollateralized way or undercollateralized way (think: one-block liquidity Flash Loan).
Aave just released an AMM Market where Uniswap and Balancer LPs can use their LP tokens as collateral. New types of collateral and AMM protocols can be added through the Aave Governance process as well.
More information on that can be found here: https://medium.com/aave/aave-amm-market-released-73ae76a7cbc0
To learn more visit aave.com (https://aave.com) to learn more
*If you like what we do: *
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This week, Anna & Tarun take an in-depth look into AMMs with Guillermo Angeris, a PhD student in Stanford who co-authored a number of papers on fundamental AMM properties. They chat about how his work on Optimization Theory and Inverse Design can be applied to a DeFi context, as well as his most recent paper deals with privacy in AMMs, effectively demonstrating how superficial attempts at making a private AMM are doomed.

During the conversation, Anna, Tarun and Guillermo chat about why AMMs today are so revolutionary and unique in the financial world, and why their success can be explained by optimization theory and convexity. But AMMs also have a number of shortcomings like front-running and impermanent loss, where Guillermo’s PhD work may just help find the solution.

Here are a few links for this episode:

Zero Knowledge Episode 153, Monsters in the Mempool with Dan Robinson
Zero Knowledge Episode 168, Flashbots with Phil Daian and Stephane Gosseline
Guillermo’s latest paper on the challenges of implementing private AMMs
Guillermo and Tarun’s first paper on Uniswap and Constant Function Market Makers, formalizing their practical qualities.
Other papers by Guillermo and Tarun analyzing the optimal fee and bonding curve of CFMMs.
Zero Knowledge Episode 103, Exploring VDFs with Joseph Bonneau
Guillermo’s papers on optimization problems and inverse design.

Check out the Cosmos Privacy & ZKP Showcase -> https://hopin.com/events/cosmos-privacy-zkp-showcase

And the Zero Knowledge Gitcoin Grant -> https://gitcoin.co/grants/329/zero-knowledge-podcast

Thank you to this week’s sponsor, Aave.

Aave is an open source, decentralised non-custodial liquidity protocol on Ethereum.

With Aave, users can participate as depositors meaning they provide liquidity to earn a passive income. or they can also act as borrowers to borrow in an overcollateralized way or undercollateralized way (think: one-block liquidity Flash Loan).

Aave just released an AMM Market where Uniswap and Balancer LPs can use their LP tokens as collateral. New types of collateral and AMM protocols can be added through the Aave Governance process as well.

More information on that can be found here: https://medium.com/aave/aave-amm-market-released-73ae76a7cbc0

To learn more visit aave.com to learn more

*If you like what we do: *

Follow us on Twitter - @zeroknowledgefm

Join us on Telegram

Catch us on Youtube

Read up on the r/ZKPodcast subreddit

Give us feedback! -https://forms.gle/iKMSrVtcAn6BByH6A

Support our Gitcoin Grant

Support us on the ZKPatreon

Donate through coinbase.commerce

*Or directly here: *

ETH: 0xC0FFEE1B5083230a5154F55f253B6b6ae8F29B1a

BTC: 1cafekGa3podM4fBxPSQc6RCEXQNTK8Zz

ZEC: t1R2bujRF3Hzte9ALHpMJvY8t5kb9ut9SpQ