The automated market maker (AMM) revolutionized decentralized exchange. Not because it offered a better mechanism for matching a buyer and seller, but because it was the buyer and seller. Really! An AMM is nothing more than a counterparty to every trade. Pooling capital for multiple sources and maintaining a portfolio of tokens algorithmically. Specific to current AMM designs, is how this portfolio is maintained. This allocation of tokens in a AMM portfolio is determined by a invariant which ...