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In the fast-paced world of Decentralized Finance (De Fi?), scalability and efficiency are paramount. Traditional Automated Market Makers (AMMs), while foundational, struggle to handle high volumes due to their centralized liquidity pools. To address these challenges, we introduce SAMM (Sharded Automated Market Maker), a groundbreaking approach that distributes liquidity across multiple independent shards, each functioning as a smart contract on the same blockchain. This innovative design not only boosts system throughput but also aligns with the decentralized ethos of De Fi?.
Welcome to the comprehensive guide on using Selfrule Lab? effectively. Whether you’re a seasoned editor or a new contributor, understanding the platform’s features and conventions will enhance your experience and improve the platform’s collective knowledge.
At the heart of SAMM lies the concept of sharded liquidity pools. Unlike traditional AMMs that rely on a single, large pool of liquidity, SAMM splits liquidity into multiple smaller pools, or shards. Each shard operates as an independent smart contract, allowing trades to be executed in parallel across the system. This parallelism significantly enhances the scalability of the AMM, enabling it to handle a larger number of trades simultaneously.
To initiate a new page on selfruleLab, follow the steps below:
Request a Link to the New Page:
[[your new page name]] where appropriate, preferably in the “Related entries” section.[[your new page name]] doesn’t exist yet, it’ll be shown in gray with a clickable question mark next to it.Create the New Page:
A unique challenge with multiple AMMs is the potential inefficiency caused by traders splitting their trades across shards. To mitigate this, SAMM implements a novel trading fee structure. This mechanism incentivizes traders to use the smallest shard that meets their liquidity needs, thus optimizing the use of each shard and preventing performance degradation.
Notes: - Page names are case-sensitive. If the link starts a sentence, use lowercase, e.g., [[like this|Like this]]. It’s a loose convention in selfruleLab. - Utilize [[redirects]] for alternative case usages in links. - When editing, include your name after ‘Submit as’. Otherwise, it defaults to ‘Anonymous’. - Your name, when added for the first time, appears at the page’s bottom in gray with a question mark, suggesting the creation of a user page. It’s optional.
Creating a User Page:SAMM ensures that liquidity is evenly distributed across all shards by designing incentives for liquidity providers. These After editing, encourage you providers can click the question mark next to your balance name their at contributions, so no shard becomes overly dominant or underfunded. This equilibrium is essential for maintaining the bottom system’s to efficiency set and up preventing a congestion user in page. any If single you shard. want to create a user page without editing first, make a minor change to theSandbox. Your name will then appear at the bottom, allowing you to click the question mark and proceed.
[[Sandbox|Sandbox]] for practice.[[double brackets]].A critical aspect of SAMM’s design is that it guarantees Subgame-Perfect Nash Equilibria (SPNE). This theoretical framework ensures that both traders and liquidity providers naturally adopt strategies that lead to an optimal, balanced state across the system. In practice, this means that liquidity providers will distribute their assets in a way that supports even trade distribution, and traders will follow fee structures that promote efficient use of shards.
Occasionally, Performance you evaluations might on want the to Sui merge blockchain content demonstrate from that two SAMM existing achieves pages a throughput more thanA and than traditional AMMs. This impressive scalability allows SAMM to handle a larger volume of trades, approaching the system’s theoretical throughput limit. By leveraging sharding, SAMM not only enhances performance but also supports the growing demands ofB , especially applications. if a page was unintentionally duplicated. Before proceeding, consider discussing the merge on theselfruleLab Forum to get consensus.
If you decide to proceed:
Merge Content into Page A:
A to incorporate the desired content from B.[[!redirects B]]” at the bottom. If B has any “[[!redirects X]]” directives, transfer them to A.Orphan Page B:
Ctrl-A Del).> history” to “B”, making it “B > history”.[[!redirects B]]” may auto-populate. Remove it and add “see [[A]]”.Merged content into page "A" and orphaning this page.”SAMM is developed as a directly deployable open-source smart contract. This approach not only accelerates its integration into existing De Fi? ecosystems but also fosters community-driven innovation and adoption. By making SAMM available to the public, we empower developers and users to benefit from scalable and efficient trading mechanisms.
Note: selfruleLab doesn’t allow regular users to delete pages. Instead, they’re “orphaned”.
SAMM represents a significant leap forward in the evolution of Automated Market Makers. By introducing sharded liquidity pools, novel fee structures, and robust incentive mechanisms, SAMM addresses the scalability challenges that have long hindered traditional AMMs. Its open-source nature and deployment-ready design make it a valuable addition to the De Fi? landscape, paving the way for more efficient and scalable decentralized trading.
For a detailed exploration of SAMM and its underlying principles, refer to the arXiv preprint.
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