Author: Julien Prat

Past Events

BlockSem: NFTs and Behavioural Analysis

The BlockSem seminar brings together academic and private researchers working on blockchain technologies. The seminar is multidisciplinary, hosting presenters from computer science, economics and finance.

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Past Events

BlockSem: CBDCS and Verifier Dilemma

The BlockSem seminar brings together academic and private researchers working on blockchain technologies. The seminar is multidisciplinary, hosting presenters from computer science, economics and finance.

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Past Events

BlockSem: AMMs and CBDCs

The BlockSem seminar brings together academic and private researchers working on blockchain technologies. The seminar is multidisciplinary, hosting presenters from computer science, economics and finance.

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Publications

The Economics of Constant Function Market Makers

We use microeconomic theory to describe the inner workings of Constant Function Market Makers (CFMMs). We show that standard results from consumer theory apply in this new context, endowing us with powerful tools to characterize the optimal design of CFMMs. We employ them to analyze the externalities that traders and liquidity providers exert on each other when interacting through a CFMM. Liquidity providers reduce the execution costs by flattening the bonding curve on which trades are executed. Arbitrageurs impose an adverse selection cost on liquidity providers by unfavorably rebalancing their portfolio. We show that the strengths of these two externalities are pinned down by the curvature of the bonding curve and are inversely related to each other, thereby identifying the fundamental economic tradeoff that market designers have to address.

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Publications

SoK: Constant Function Market Makers

We provide an overview of the academic literature on Automated Market Makers for Decentralized Exchanges. Our review puts an emphasis on contributions from researchers in economics and finance. We cover papers that study the optimal design of Automated Market Makers. Then we discuss models that leverage the insights from the literature on two-sided markets to characterize the equilibrium size of liquidity pools and the incentives of liquidity providers. Finally, we review recent research on the interactions between Miner Extractible Value and Decentralized Exchanges.

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Outlooks

Blockchains & Sustainable Development

This report is a continuation of the work of the Blockchain for Good association, including the publication of a first report released in June 2020. Both attempt to answer the question of whether and how blockchains could help accelerate the achievement of the Sustainable Development Goals in a significant and sustainable way.

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Publications

Proceedings of Tokenomics 2021

Tokenomics is an international forum for theory, design, analysis, implementation and applications of blockchains and smart contracts. The goal of the conference is to bring together economists, computer science researchers and practitioners working on blockchains in a unique program featuring outstanding invited talks and academic presentations.

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Insights

Back to the First Edition of the Future.s of Money in Paris

On June 16 and 17 2022, the blockchain@X chair at Ecole Polytechnique organized a unique event in Paris: The Future.s of Money. Many experts and actors from the economic, financial, digital and research worlds gathered around conferences dealing with the future and the digitalisation of money, now accessible to all.

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