The Adoption of Blockchain-Based Decentralized Exchanges

This course explores the adoption of blockchain-based decentralized exchanges, focusing on the market microstructure of Automated Market Makers (AMMs) in the context of decentralized finance (DeFi). The learning outcomes include understanding the differences between AMMs and centralized limit order books, analyzing pricing functions, and exploring the dynamics of arbitrage and liquidity provision in DeFi exchanges. The course covers topics such as liquidity provision, AMM pricing functions, convexity, price impact, and statistical analysis using transaction-level data. The teaching method involves a dynamic game theoretical model and statistical support from real-world data. This course is intended for individuals interested in financial mathematics, blockchain technology, decentralized finance, and the intersection of mathematics with finance and engineering.