This research presents a first-of-its-kind analysis of the cost implications of exchanging Central Bank Digital Currencies (CBDCs) across different Automated Market Makers (AMMs). The findings highlight that a multi-AMM setup on Layer 2 (L2) networks offers greater cost efficiency compared to using a single AMM such as Project Mariana. By evaluating historical foreign exchange (FX) rates, the study also introduces a framework to simulate and analyze transaction costs, including gas fees and price impacts, providing a valuable resource for future CBDC projects within the decentralized finance (DeFi) domain.
This study found that a multi-AMM set-up for CBDCs exchange on L2 is more cost-efficient than a single AMM of Project Mariana, despite the fragmentation of liquidity.
Conducting first detailed analysis of the total costs of CBDCs swaps on AMM-DEX includes gas fees, swap fees, and price impact across various AMMs.
Collection
[
|
...
]