Today, after 9 months of Alpha and Beta testing and years of research on Constant Function Market Makers (CFMMs), we’re excited to announce that GammaSwap is live! What is GammaSwap? GammaSwap is the first-ever DeFi primitive enabling users to borrow liquidity from any Automated Market Maker (AMM) pool. Traders can use GammaSwap to…

Your favorite upcoming Arbitrum protocols are co-hosting a trading competition to enable you to test out your volatility trading strategies. We are excited to announce we will be co-hosting a trading competition with Rysk Finance, a feature-rich options protocol with an advanced user experience for traders. The collaborations don’t stop…

GammaSwap is extremely excited to announce the conclusion of our private $1.7M Seed Round. The round was strongly oversubscribed and has reflected the confidence of many in GammaSwap’s ability to modularly scale DeFi. Investors & Partners We were pleased not only by the conviction of our investors in the GammaSwap thesis but also…

Implications on CFMM Design — Introduction to Long Gamma Strikes In a previous article I modeled the performance of a liquidity provider in a CFMM such as Uniswap V2 providing liquidity at the current price, under the assumption of Geometric Brownian Motion. A common assumption made when modeling financial asset prices in quantitative finance. In this article, I will generalize…

An Oracle Free Decentralized Platform for Volatility Trading and Commission Free Token Trading — Introduction In a previous article, I wrote about the similarity of liquidity provision in automated market makers such as Uniswap to the short straddle option strategy in traditional financial markets. In a follow up article, I explained that the lack of an ability to go long volatility/gamma through automated market makers…

Introduction Uniswap is the most popular AMM in DeFi. As of May 31st, 2022, Uniswap V3 had 4.01 billion USD of liquidity staked in its pools with a daily trading volume of 1.29 billion USD, while Uniswap V2 had 1.74 billion USD staked and a daily trading volume of 91 million…

A Better Way to Measure Pool Performance — Introduction The goal of this article is to show how Uniswap is not only a decentralized exchange for buying and selling digital assets but also a type of options market. The one sided marketplace introduces implied volatility over historical, or expected volatility, as a better metric to judge a Uniswap pool’s…

Introduction In a previous article I showed how to calculate the expected impermanent loss from Uniswap V2 and V3. …

Introduction In a previous article, I showed how to calculate impermanent loss in Uniswap V2. In this article, I’ll show how to calculate expected impermanent loss in Uniswap V2 & V3. …