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We are working on a #cadCAD model of Uniswap @block_science and using the same data I decided to plot a few charts to help illustrate bonding curves in action. Here’s “Visualizing bonding curves: the Uniswap case” 📈📉📊 (1/9)
Left: DAI and ETH balances of the Uniswap smart contract move along the curve. The area of the green rectangle is constant with every move, except fees make the curve move up and to the right a little bit with each trade (2/9)
The curve moves more - up or down, but always along that same diagonal - when liquidity is added to or removed from the pool (= UNI mints/burns, upper-right chart) (3/9)
Both of these conservations - the area of the rectangle and the direction of the diagonal - are somewhat approximated in the video because we are looking at aggregated daily activity, not individual transactions (4/9)
Middle-right chart shows how 3 different strategies performed over time since the first day Uniswap was live. It hints at the effects of impermanent loss (h/t @bluepintail ), eg. until Dec-16 liquidity providers had performed worse than “50/50 hodlers” (5/9) 
Bottom-right chart is my take on adding another dimension to the excellent analysis done here medium.com/@pintail/unisw…. It shows how liquidity providers fared compared to 50/50 holders depending on the initial date of the comparison... (6/9)
... and confirms the intuition that with ETH/DAI going mostly sideways in the past year or so, with sudden spikes and drops here and there, impermanent loss is frequent but doesn’t last long (7/9)
Next steps we'd like to work on are modeling different types of user behavior (liquidity providers, arbitragers, casual traders,...) and simulating "what if" scenarios using #cadCAD. If you're interested, come join us @ community.cadcad.org (8/9)
(code and data for the video are in this Kaggle notebook kaggle.com/markusbkoch/un…) (9/9)
Seems Twitter screwed the video quality on the desktop. In the cadCAD forum you'll find the YouTube version and a download link community.cadcad.org/t/modeling-uni… (10/9)
