ammBoost: State Growth Control for AMMs

Nicholas Michel; Mohamed E. Najd; Ghada Almashaqbeh

Paper 2024/1021

ammBoost: State Growth Control for AMMs

Nicholas Michel, University of Connecticut

Mohamed E. Najd, University of Connecticut

Ghada Almashaqbeh, University of Connecticut

Abstract

Automated market makers (AMMs) are a form of decentralized cryptocurrency exchanges and considered a prime example of Decentralized Finance (DeFi) applications. Their popularity and high trading activity have resulted in millions of on-chain transactions leading to serious scalability issues. In this paper, we address the on-chain storage overhead problem of AMMs by utilizing a new sidechain architecture as a layer 2 solution, building a system called ammBoost. Our system reduces the amount of on-chain transactions, boosts throughput, and supports blockchain pruning. We devise several techniques to enable layer 2 processing for AMMs while preserving correctness and security of the underlying AMM. We also build a proof-of-concept of ammBoost for a Uniswap-inspired use case to empirically evaluate its performance. Our experiments show that ammBoost decreases the gas cost by 94.53% and the chain growth by at least 80%, and that it can support up to 500x of the daily traffic volume observed for Uniswap in practice.

Metadata

Available format(s): PDF
Category: Cryptographic protocols
Publication info: Preprint.
Keywords: Sidechains Automated market makers (AMMs)Blockchain scalability
Contact author(s): nicolas michel @ uconn edu
menajd @ uconn edu
ghada @ uconn edu
History: 2024-06-28: approved; 2024-06-24: received; See all versions
Short URL: https://ia.cr/2024/1021
License: CC BY

BibTeX

@misc{cryptoeprint:2024/1021,
      author = {Nicholas Michel and Mohamed E. Najd and Ghada Almashaqbeh},
      title = {{ammBoost}: State Growth Control for {AMMs}},
      howpublished = {Cryptology ePrint Archive, Paper 2024/1021},
      year = {2024},
      note = {\url{https://eprint.iacr.org/2024/1021}},
      url = {https://eprint.iacr.org/2024/1021}
}