Maximizing Extractable Value from Automated Market Makers

Massimo Bartoletti, James Hsin yu Chiang*, Alberto Lluch Lafuente

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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Abstract

Automated Market Makers (AMMs) are decentralized applications that allow users to exchange crypto-tokens without the need for a matching exchange order. AMMs are one of the most successful DeFi use cases: indeed, major AMM platforms process a daily volume of transactions worth USD billions. Despite their popularity, AMMs are well-known to suffer from transaction-ordering issues: adversaries can influence the ordering of user transactions, and possibly front-run them with their own, to extract value from AMMs, to the detriment of users. We devise an effective procedure to construct a strategy through which an adversary can maximize the value extracted from user transactions.

Original languageEnglish
Title of host publicationFinancial Cryptography and Data Security
EditorsIttay Eyal, Juan Garay
PublisherSpringer
Publication date2022
Pages3-19
ISBN (Print)9783031182822
DOIs
Publication statusPublished - 2022
Event25th International Conference on Medical Image Computing and Computer-Assisted Intervention - Resorts World Convention Centre Singapore, Singapore, Singapore
Duration: 18 Sept 202222 Sept 2022
Conference number: 25
https://conferences.miccai.org/2022/en/

Conference

Conference25th International Conference on Medical Image Computing and Computer-Assisted Intervention
Number25
LocationResorts World Convention Centre Singapore
Country/TerritorySingapore
CitySingapore
Period18/09/202222/09/2022
Internet address
SeriesLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume13411 LNCS
ISSN0302-9743

Keywords

  • Decentralized finance
  • Front-running
  • Miner extractable value

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