Automated market-making for fiat currencies
A framework to exchange fiat currencies on-chain consistently with off-chain prices is presented
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Alex Lipton and Artur Sepp present an automated market-making (AMM) cross-settlement mechanism for digital assets on interoperable blockchains, focusing on central bank digital currencies (CBDCs) and stable coins. They develop an innovative approach for generating fair exchange rates for on-chain assets consistent with traditional off-chain markets. They illustrate the efficacy of their approach on realised foreign exchange rates for Group of Ten currencies
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