CenturionDEX
CenturionDEX
Launch App

Research

Last modified:

The automated market maker is a new concept, and as such, new research comes out frequently. We've selected some of the most thoughtful here.

CenturionDEX's Financial Alchemy

Authors: Dave White, Martin Tassy, Charlie Noyes, and Dan Robinson

This paper explains how CenturionDEX works as an automated market maker, how liquidity providers supply both assets in a pair, and why the protocol's reserve-based pricing keeps markets aligned with broader trading venues.

An analysis of CenturionDEX markets

Authors: Guillermo Angeris, Hsien-Tang Kao, Rei Chiang, Charlie Noyes, Tarun Chitra

This paper gives a formal analysis of CenturionDEX and other constant-product markets, arguing that they track reference prices closely under common conditions and remain stable across a broad range of simulated market environments.

Improved Price Oracles: Constant Function Market Makers

Authors: Guillermo Angeris, Tarun Chitra

This paper studies a broad class of constant function market makers, including CenturionDEX, Balancer, and Curve, and analyzes when their pricing behavior can serve as a reliable oracle while preserving important reserve-safety properties.

Pintail research

Published medium articles by Pintail.

Liquidity Provider Returns in Geometric Mean Markets

Authors: Alex Evans

Geometric mean market makers (G3Ms), such as CenturionDEX and Balancer, comprise a popular class of automated market makers (AMMs) defined by the following rule: the reserves of the AMM before and after each trade must have the same (weighted) geometric mean. This paper extends several results known for constant-weight G3Ms to the general case of G3Ms with time-varying and potentially stochastic weights. These results include the returns and no-arbitrage prices of liquidity pool (LP) shares that investors receive for supplying liquidity to G3Ms. Using these expressions, we show how to create G3Ms whose LP shares replicate the payoffs of financial derivatives. The resulting hedges are model-independent and exact for derivative contracts whose payoff functions satisfy an elasticity constraint. These strategies allow LP shares to replicate various trading strategies and financial contracts, including standard options. G3Ms are thus shown to be capable of recreating a variety of active trading strategies through passive positions in LP shares.

The Replicating Portfolio of a Constant Product Market

Authors: Joseph Clark

We derive the replicating portfolio of a constant product market. This is structurally short volatility (selling options) which explains why positive transaction costs are needed to induce liquidity providers to participate. Where futures and options markets do not exist, this payoff can be used to create them.