0/ With the recent explosion of @UniswapExchange, I think it’s a good time to explore the current state of DEX design. This thread will examine the mechanics (and tradeoffs) of a few major DEX protocols. 1/ We’ll start with @UniswapExchange, which uses the constant product market maker model. This model, adapted from the logarithmic market scoring rule (LMSR) used in prediction market protocols like @AugurProject, applies a deterministic algorithm to automatically make markets.