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3 Token CFMM

Constant Fuction Market Maker based on the isoutility function U(x,y,z) = (x*y*z) - (x+y+z)/3. The program file has successfully compiled and is running on our systems.

3

3 Token CFMM

Constant Fuction Market Maker based on the isoutility function U(x,y,z) = (x*y*z) - (x+y+z)/3. The program file has successfully compiled and is running on our systems.

The problem 3 Token CFMM solves

Application of stable coins in a common liquidity pool with less slippage and simple swap mechanism. The CFMM in the market are based either on a single summation formula or product formula, but this is a hybrid function, which are more efficient than others.
We aim to provide the crypto community to construct decentralized exchanges for digital assets on pre-defined set of prices based on the available quantities of two or more assets. Unlike traditional order book-based exchanges, traders can trade against a pool of assets rather than a specific counterparty.

Challenges we ran into

The challenges were:

  1. Discovering a function which suited our needs for a Constant Function Market Maker, which minimised slippages. The team dove into mathematical resources to discover the best suited expression.
  2. The language had feeble community support, which we overcame by thorough analyzation of the documentation provided among ourselves, this challenge forced us to dive deep in the concepts and developed harmaony and co-ordination among team members.

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