Capped Automated Market Makers

<p>I'm not the only inventor on the block.</p> <p>I've had quite a few conversations with Vitomir Jevremovic recently about a new concept he's come up with - the capped AMM.</p> <p>It's an interesting DeFi concept that he's built a prototype for, which places an upper limit on how much of one of the tokens in the token pair the contract can hold.</p> <p>In this video, I briefly explain how AMMs work, and then cover what different properties the cap adds to the AMM. They relate to price-discovery, and an alternate way of releasing a token into a finance ecosystem.</p> <p>As it's a very new idea, it may have all sorts of other unexpected applications and properties that will become apparent over time.</p> <p>See Vitomir's write-up at https://docs.all.art/protocol/camm for more details.</p> <p>Vitomir is using it to provide increased liquidity in the NFT licensing market, and how he plans to do this is the topic of my next video.</p>