Untangling Uniswap? Demystifying DeFi? You Tell Me: An Excel-based DeFi Uniswap Liquidity Pool/Automated Market Maker Simulator
For a few years I was in cryptocurrency trading. Eventually, this led me to the wild west of decentralized finance tokens ("DeFi"), an exciting area that I feel has strong potential to be on the cutting edge of technology's potential to fundamentally reshape our society.
Decentralized Finance concept: The "Automated Market Maker"Among the odd beasts you'll encounter on the frontiers of DeFi is the "Automated Market Maker" (AMM) managing a "liquidity pool", of which the most prominent current example is Uniswap. This is a decentralized algorithm running on the Etheruem network that serves the same purpose in DeFi markets as the large "market makers" and financial houses that retail traders are buying and selling from in the traditional stock market. In DeFi, instead of being privately run, these are open and communal, and operate by strict rules set up in "smart contracts" on the…