Automated market-makers create market integrity and stability risks – research
Canadian research warns of real economy impact, depending on level of interconnection
Automated market-makers (AMMs) create market integrity and financial stability risks “through unique and complex channels”, researchers at the Bank of Canada and Ontario Securities Commission find.
AMMs are the most popular decentralised exchange approach used for the pricing and trading of crypto assets within decentralised finance (DeFI). They often provide custody and investment services to liquidity providers and liquidity and settlement for traders, write the authors.
Users of the AMM put
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