In 2018, a simple mathematical formula changed the course of financial history:  x * y = k. This elegant equation, implemented by Uniswap, gave birth

Building Automated DeFi Businesses on Solana

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2024-10-22 13:00:03

In 2018, a simple mathematical formula changed the course of financial history: x * y = k. This elegant equation, implemented by Uniswap, gave birth to Automated Market Makers (AMMs) and revolutionized how we think about trading. No longer did we need traditional market makers, order books, or centralized exchanges. Instead, a mathematical constant and a smart contract could create liquid markets for any asset pair.

This innovation democratized market making. What once required significant capital, sophisticated infrastructure, and special relationships with exchanges could now be done by anyone with some crypto assets and basic programming knowledge. Welcome to the world of permissionless, trustless finance.

Solana has emerged as the ideal blockchain for solo developers looking to build automated DeFi businesses, particularly in liquidity provision. Here's why:

This composability allows solo developers to create sophisticated financial products that were once the domain of large institutions.

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