Automated Market Makers (AMMs) are a fundamental component of any Layer 1 blockchain, and there are several types of AMMs in use. While most people are familiar with the constant-product AMM like Uniswap, there’s another type of AMM that’s worth exploring: the constant-sum AMM.
This tutorial will provide an in-depth explanation of the concept of constant-sum AMM, and guide learners through the process of building a smart contract that will implement this type of AMM. By explaining the underlying principles and formulas of constant-sum AMM, you’ll gain a thorough understanding of the system before diving into the code.
In this tutorial, learners learn how to compare the theoretical concepts of constant-sum AMM with the practical implementation of the smart contract, and explore the nuances of the price curve, formulas, and other technical details that make constant-sum AMM such a powerful tool for decentralized finance.
The learners will also create a simple web application that will allow them to swap tokens through it.
By the end of this tutorial, learners will have a solid understanding of constant-sum AMM and how to implement it in their own smart contracts.