Week 1 Week 4 of 12 Week 12

Week 4: Decentralized Exchanges

Automated Market Makers, liquidity pools, and DEX mechanics

Complete

--- ## Learning Objectives

1. Explain AMM pricing mechanisms
2. Calculate swap outputs and price impact
3. Analyze liquidity pool dynamics
4. Compare different DEX designs

## Topics Covered

Order books vs AMMs Constant Product Market Makers (x*y=k) Uniswap V2 and V3 mechanics Liquidity provision and LP tokens Slippage and price impact

--- ## Resources

Lecture Slides

Download PDF presentation

→

Self-Assessment Quiz

Test your knowledge

→

AMM Mechanics

Open in Google Colab

→

--- ## Required Readings

Paper	Authors	Year	Link
An Analysis of Uniswap Markets	Angeris et al.	2021	Link
Improved Price Oracles: Constant Function Market Makers	Angeris, Chitra	2020	Link

--- ## Reading Guide: Reading Guide: Automated Market Makers

3 hours Constant function market makers Liquidity provision MEV and frontrunning

Deep dive into the mathematics and economics of automated market makers and liquidity provision.

View Reading Guide

--- ## Exercise: AMM Mechanics and Analysis

100 Points 4-5 hours hard

Implement AMM calculations, analyze price impact, and simulate liquidity pool dynamics.

View Full Exercise

--- ## Discussion & Questions

Join the Conversation

Have questions about this week's material? Want to discuss concepts with fellow students?

Week 4 Discussion Ask a Question

---

Week 3 Course Home Week 5