Yes, nice "quick" write-up. lol My brain hurts. I've read through it once and so I'm getting it on a general level. Now I've got to go back and read through it slowly to make sure I understand. I'm seeing how the "price" would change pulling out from one side or the other. But this would then only be the price on inside this particular AMM, right? If, for instance, HIVE spiked to $2.00 on Bittrex then there actually would be a place for arbitrageurs to come in and sell HIVE there while buying it here. Am I correct on this?
So while arbitrage does NOT play into the actual workings of the AMM, it is still part of the equation with multiple markets/exchanges.
Good stuff!!! Thanks for taking the time to do this. You're right, it's one of those things that everyone just spits out things they've heard and very few people actually understand.
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yeah