Blog Banner: Covalent on Automated Market Making and Uniswap

Covalent on Automated Market Making and Uniswap

Ganesh (Covalent's co-founder) had the opportunity to speak to a group of product managers last week in San Francisco on Automated Market Making and Uniswap. Most people only know how to use Uniswap as a decentralized exchange. It was interesting to show people how Uniswap works for them as a liquidity provider.


To spice things up, we also distributed DAI to all the attendees, so everyone had a chance to participate as an LP. Truly permissionless.

Topics we covered (whiteboarding + live demo):

  • How Uniswap's automated market-making mechanism works
  • How Liquidity Providers are compensated for providing capital
  • How to calculate your returns as a liquidity provider
  • Secondary use-cases of Uniswap – price feeds, liquidity tokens, building on Uniswap, etc.

It was also a good opportunity to showcase to calculate the audience's returns in real-time.