AMMs as Managed, Customized Portfolios by Theo Diamandis | Devcon SEA
Thu, Oct 2, 2025, 12:00 AM
When you provide liquidity to a Uniswap or Balancer pool, what financial product are you actually buying? This talk considers automated market makers from the perspective of liquidity providers. We first mathematically describe the underlying financial derivative that LP positions represent. Then, we show how to use AMMs to construct custom financial derivatives, specified by their payoff function, and discuss implications. Speaker(s): Theo Diamandis Skill level: Expert Track: Cryptoeconomics Keywords: Trading, AMMs, liquidity, provisioning Follow us: https://twitter.com/efdevcon, https://twitter.com/ethereum, https://warpcast.com/devcon Learn more about devcon: https://www.devcon.org/ Learn more about ethereum: https://ethereum.org/ Visit the https://archive.devcon.org/ to gain access to the entire library of Devcon talks with the ease of filtering, playlists, personalized suggestions, decentralized access on Swarm, IPFS and more. Devcon is the Ethereum conference for developers, researchers, thinkers, and makers. Devcon SEA was held in Bangkok, Thailand on Nov 12 - Nov 15, 2024. Devcon is organized and presented by the Ethereum Foundation. To find out more, please visit https://ethereum.foundation/
Speakers
Theo is a Research Partner at Bain Capital Crypto, where he works on problems in cryptoeconomics and DeFi. He completed a PhD in mathematical optimization at MIT, during which he worked on network flow problems––everything from novel formulations to solvers to some fun blockchain applications.