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Finish some final concepts

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sdiehl 2022-03-31 11:10:18 +01:00
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11
concepts/amm.md
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@ -9,7 +9,7 @@ From https://academy.binance.com/en/articles/what-is-an-automated-market-maker-a
>
> AMMs have really carved out their niche in the DeFi space due to how simple and easy they are to use. Decentralizing market making this way is intrinsic to the vision of crypto.
## Examples
Examples of AMM crypto projects:
* Uniswap
* SushiSwap
@ -47,8 +47,11 @@ Uniswap is iterating to favor "professional players":
## References
* https://academy.binance.com/en/articles/what-is-an-automated-market-maker-amm
* https://twitter.com/HideNotSlide/status/1386358389240958977 - someone getting excited about not having transparent market makers as if this is something innovative but what about e.g. https://en.wikipedia.org/wiki/IEX
* https://www.bis.org/publ/qtrpdf/r_qt2112v.htm - good brief overview from BIS. Note interesting footnote (no 2):
1. Allen, Hilary J. 2022. ‘DeFi: Shadow Banking 2.0?’ William & Mary Law Review, Forthcoming.
1. Walch, Angela. 2019. ‘Deconstructing ‘Decentralization’: Exploring the Core Claim of Crypto Systems’. C. Brummer (Ed.), Crypto Assets: Legal and Monetary Perspectives, 1–36. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3326244.
1. Anker-Sørensen, Linn, and Dirk A Zetzsche. 2021. ‘From Centralized to Decentralized Finance: The Issue Of’. Available at SSRN 3978815. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3978815.
1. https://www.bis.org/publ/qtrpdf/r_qt2112v.htm - good brief overview from BIS. Note interesting footnote (no 2):
§
> The AMM trading mechanism shares similarities with the framework of Shapley and Shubik (1977), which ensures market-clearing. See L Shapley and M Shubik, "Trade using one commodity as a means of payment", Journal of Political Economy, vol 85, no 5, pp. 937–68, and H S Shin, "Comparing the robustness of trading systems to higher-order uncertainty", Review of Economic Studies, vol 63, no 1, pp. 39–59.
1. https://academy.binance.com/en/articles/what-is-an-automated-market-maker-amm
1. https://twitter.com/HideNotSlide/status/1386358389240958977 - someone getting excited about not having transparent market makers as if this is something innovative but what about e.g. https://en.wikipedia.org/wiki/IEX

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concepts/dex.md
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# Decentralized Exchange
Order-book based but peer-to-peer transactions (i.e. without market makers). This contrasts with [AMM](AMM.md) (automated market makers) who don't have an order book.
A form of [market making](market-maker.md) done via a [smart-contracts](smart-contracts.md). In this setup the [order-book](order-book.md) is based on peer-to-peer transactions instead of through a central party like a [crypto-exchange](crypto-exchange.md). This contrasts with [AMM](AMM.md) (automated market makers) who don't have an [order book](order-book.md) and instead use [liquidity pools](liquidity-pool.md).
## Limitations
Decentralized exchanges lack the ability to withdraw currencies like [dollar](dollar.md) and Euros because they have no access to the [banking](bank.md) system to issue payments.
From https://academy.binance.com/en/articles/what-is-uniswap-and-how-does-it-work
> Due to the inherent limitations of [blockchain](blockchain.md) technology, it has been a challenge to build DEXes that meaningfully compete with their centralized counterparts. Most DEXes could improve both in terms of performance and user experience.
See also [crypto exchange](crypto-exchange.md), [bucket shop](bucket-shop.md), [mixer](mixer.md) and [money laundering](money-laundering.md).
## References
1. Allen, Hilary J. 2022. ‘DeFi: Shadow Banking 2.0?’ William & Mary Law Review, Forthcoming.

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concepts/narrative-economics.md
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# Narrative Economics
The study of the spread and dynamics of popular narratives, the stories, particularly those of human interest and emotion, and how these change through time, to understand economic fluctuations and markets. A interpretation of economics advanced by the Nobel prize winner Robert Shiller.
See also [narrative economics of crypto](../claims/narrative-economics.md), [bandwagon-bias](bandwagon-bias.md),[endowment-effect](endowment-effect.md), and [Tinkerbell effect](tinkerbell-effect.md).
## References
* Shiller, Robert J. 2017. ‘Narrative Economics’. American Economic Review 107 (4): 967–1004.
* Shiller, Robert J. 2017. ‘Narrative Economics’. American Economic Review 107 (4): 967–1004.

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concepts/predatory-inclusion.md
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# Predatory Inclusion
Predatory inclusion refers to a process whereby members of a marginalized group are provided with access to a good, service, or opportunity from which they have historically been excluded but under suboptimal or risky conditions that jeopardize the benefits of access.
With regards to financial assets this concept is typically discussed in conjunction with the [unbanked.](unbanked..md)
With regards to financial assets this concept is typically discussed in conjunction with the [unbanked](unbanked.md).
See [crypto exchange](crypto-exchange.md).

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meta/concepts-todo.md
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@ -112,6 +112,6 @@ Fourth Pass
Fifth pass
- [ ] [enclosure](../concepts/enclosure.md)
- [ ] [amm](../concepts/amm.md)
- [ ] [dex](../concepts/dex.md)
- [ ] [narrative-economics](../concepts/narrative-economics.md)
- [x] [amm](../concepts/amm.md)
- [x] [dex](../concepts/dex.md)
- [x] [narrative-economics](../concepts/narrative-economics.md)