AI RESEARCH
Towards Event-Aware Forecasting in DeFi: Insights from On-chain Automated Market Maker Protocols
arXiv CS.LG
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ArXi:2604.20374v1 Announce Type: new Automated Market Makers (AMMs), as a core infrastructure of decentralized finance (DeFi), uniquely drive on-chain asset pricing through a deterministic reserve ratio mechanism. Unlike traditional markets, AMM price dynamics is triggered largely by on-chain events (e.g., swap) that change the reserve ratio, rather than by continuous responses to off-chain information. This makes event-level analysis crucial for understanding price formation mechanisms in AMMs.