Price discovery on decentralized exchanges

• المؤلفون الرئيسيون: CAPPONI, Agostino, JIA, Ruizhe, YU, Shihao
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2024
• الموضوعات: price discovery; blockchain fees; decentralized exchanges; informed traders; private information; Finance and Financial Management; Portfolio and Security Analysis
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/7508; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8507/viewcontent/ssrn_4236993.pdf

Decentralized exchanges (DEXs) allow traders to express their willingness to pay for quick execution through a public priority fee bidding mechanism. This influences the trading strategy of informed traders and creates a distinct price discovery process on DEXs compared to centralized exchanges. We...