Thread by @SBF_Alameda

1) Some brief thoughts on swap.projectserum.com:

2) NOT INVESTMENT ADVICE.

3) AMMs have problems.

Primarily impermanent loss; or put another way:

blindly providing while people pick you off to market moves.

4) How about Serum Swap?

Well, it's *less bad*:

a) gas fees of $0.00002
b) 1 second settlement, so arbs should happen closer to market price

but IL is still there.

5) So why use it?

a) yield: it's a convenient way to drop tokens.

e.g. right now there's a 1,000,000 SRM airdrop on Serum Swap

b) New project: if you have a new coin and want initial liquidity, it's easy to drop it in an AMM.

6) What's the future of AMMs on Serum?

Pools: docs.google.com/document/d/1lm…

A generalized primitive that can create:

a) customized AMMs
b) AMMs trading on orderbooks
c) Pooled funds
d) borrow/lending
e) yield pools
f) lots of other stuff

7) At some point, 'AMM' blurs into 'on-chain trading algorithms and funds', which are real useful things.

And on Solana, you can actually build and customize them, because it's cheap and fast.

And that lets them be powerful.

8) Pools are coming soon.

But for now, enjoy the harvest.

1m SRM yield over the next month on these Swaps:

SRM/BTC
SRM/ETH
SRM/USDT
SRM/USDC
SRM/SOL
SRM/YFI
SRM/LINK
SRM/SUSHI
SRM/FTT
SRM/FRONT

Swap on!

Or don't; up to you, really.