Swaap protocol partners with top researchers for V2 design
Swaap protocol is an Automated Market Maker that natively reduces Impermanent Loss, a phenomenon costing billions of dollars to users of traditional Automated Market Makers like Uniswap.
November 16, 2022, Paris, France
Swaap protocol announced that it partnered with Institut Louis Bachelier, a French network of researchers specializing in quantitative finance.
The partnership establishes a collaboration between Swaap and a team of academic researchers led by Olivier Guéant and Louis Bertucci. The goal is to carry out research that will help us develop the v2 of the Swaap Protocol.
Scheduled to go live in 2023, this improved version of the protocol will focus on:
- Improving the algorithms of Swaap v1 (a low-risk market-making strategy)
- Develop additional algorithms with a higher risk/reward profile
This collaboration between top academic researchers from the TradFi world and a DeFi protocol is the first of its kind. It demonstrates the growing adoption and potential of DeFi.
The research program is called “Decentralized Finance and Automated Market Makers”.
Presentation of the research team
The research team features a set of skills and a level of scientific expertise unique in DeFi:
- Olivier Guéant is a mathematician and an expert in market-making in TradFi (2,183 Google scholar citations in total). He is currently a Full Professor at Université Paris 1 Panthéon-Sorbonne and an Adjunct Professor of Quantitative Finance at ENSAE — IP Paris. He holds a Ph.D. in Applied Mathematics under the supervision of Pierre-Louis Lions, recipient of the Fields Medal in 1994. With the latter, he co-founded the data science and engineering company MFG Labs which was acquired by Havas Media in 2013. He published several academic papers on market making such as *Optimal market making,* Dealing with the Inventory Risk. A solution to the market making problem, and Size matters for OTC market makers: general results and dimensionality reduction technique.
- Louis Bertucci is a researcher at Institut Louis Bachelier (Paris, France — 21 Google scholar citations in total). He received a Ph.D. in financial economics from the University of Paris-Dauphine in 2019. Since 2017, his work has been almost entirely focused on the fundamental analysis of blockchain protocols. At Institut Louis Bachelier, he is the scientific coordinator of the Finance and Insurance Reloaded Program (FaIR). He wrote several papers on blockchain technology such as Incentives on the Lightning Network: A Blockchain-based Payment Network and How Resilient is the Bitcoin Protocol
About Swaap
Swaap protocol is an Automated Market Maker that natively reduces Impermanent Loss, a phenomenon costing billions of dollars to users of traditional Automated Market Makers like Uniswap.
Swaap v1 has been live for 4 months on Polygon, and already has some of the best risk-adjusted returns on chain.
- +1.8% net return (excluding token emissions) since launch, better than most other traditional AMMs
- 10x less risky than traditional AMMs, only 2x riskier than collateralized lending products (measured by the standard deviation of net daily returns)
- Most capital efficient protocol on 1inch for trades below $100, 7x more than the second most capital-efficient protocol
About Louis Bachelier Institute
The Institut Louis Bachelier (ILB) is a non-profit organization created in 2008. Its activities aim to engage academic researchers, as well as public authorities and private companies in research projects in economics and finance with a focus on four societal transitions: environmental, digital, demographic, and financial. The ILB is, thus, fully involved in the design of research programs and initiatives aimed at promoting sustainable development in economics and finance. In 2021, the ILB hosted more than 70 research programs.
