A Global Market Maker for decentralized token exchanges
Coach Name
Juan Juan
EU Organization
Universidad Carlos III de Madrid (UC3M)
Members
- Marcelo Bagnulo
- Ángel Hernando-Veciana
US Organization
City University of New York (CUNY)
Members
- Francisco Peñaranda
Project Overview
GMM is an interdisciplinary initiative combining economics and computer science to create a novel Automated Market Maker (AMM) that eliminates inefficiencies in decentralized exchanges (DEXs). The key innovation is using global blockchain-wide liquidity to compute asset prices, reducing slippage, arbitrage opportunities, and manipulation risks. GMM provides a more stable, transparent, and cost-efficient trading algorithm to underpin a decentralized, tokenized economy.
Methods and approaches
New AMM Design
Based on global, aggregated liquidity data
Mechanism Design
Incentive-compatible rules using microeconomic modeling
Empirical Validation
Historical blockchain data and simulations
Proof-of-Concept Implementation
Based on Uniswap v2 architecture
Social Sciences Integration
45 interviews conducted to guide design and strategy
Open Source Development
Public code, data, and papers
Key Achievements
Novel AMM design that aggregates global liquidity
Formal proof of design properties (e.g., reduced arbitrage)
Simulated and validated GMM with real transaction data
Open-source Proof of Concept (PoC) implementation
Paper accepted at SAET Conference and submitted to TLDR Workshop
Two dissemination blog posts published
Maintained strong EU–US partnership
Defined monetization via consulting services
Impact & Results
Scientific Impact
Introduced a new branch of AMM theory; full reproducible research corpus
Industrial Impact
Modular, open-source drop-in tool for DEXs without affecting governance
Economic Impact
Lowered transaction costs, increased liquidity efficiency
Social Impact
Promotes financial inclusion and fairer DeFi markets
Strategic Impact
Potential to disrupt current incentive structures in crypto markets
Publications and Open-Source Contributions
Future directions
Commercialization via Consulting
Targeting DEX operators and DeFi platforms
Broader Deployment
As a modular smart contract plugin for existing platforms
Community Growth
Outreach through blogs, conferences, and forums
Ongoing Transatlantic Collaboration
Exploring new topics and calls (e.g. NGI Transoceanic)