The Constant Product Trap: Why Every AMM is a Sophisticated Machine for Transferring Wealth From Liquidity Providers to Arbitrageurs
AMMs don't create liquidity—they architect who loses money and when. The math that looks like elegant DeFi innovation is actually a精密 mechanism for funneling impermanent loss from providers into the pockets of arbitrageurs. Here's what actually happens when you deposit tokens into a pool, and why Uniswap's k constant is both its genius and its dirty secret.