This paper introduces a trade ordering rule that aims to reduce intra-block price volatility in Automated Market Maker (AMM) powered decentralized exchanges. The ordering rule introduced here, Clever Look-ahead Volatility Reduction (CLVR), operates under the (common) framework in decentralized finance that allows some entities to observe trade requests before they are settled, assemble them into "blocks", and order them as they like. On AMM exchanges, asset prices are continuously and transparently updated as a result of each trade and therefore, transaction order has high financial value. CLVR aims to order transactions for traders' benefit. Our primary focus is intra-block price stability (minimizing volatility), which has two main benefits for traders: it reduces transaction failure rate and allows traders to receive closer prices to the reference price at which they submit their transactions accordingly. We show that CLVR constructs an ordering which approximately minimizes price volatility with a small computation cost and can be trivially verified externally.

翻译：本文提出一种旨在降低自动化做市商（AMM）驱动的去中心化交易所中区块内价格波动的交易排序规则。该规则——即智能前瞻波动率降低（CLVR）——运行于去中心化金融（DeFi）的常见框架下，该框架允许某些实体在交易请求被结算前对其进行观察、将其组装成"区块"并按自身意愿排序。在AMM交易所中，资产价格随每笔交易持续且透明地更新，因此交易顺序具有极高的金融价值。CLVR旨在通过排序为交易者创造收益。我们重点关注区块内价格稳定性（最小化波动性），这为交易者带来两大益处：降低交易失败率，并使交易者能获得更接近其提交交易时参考价格的实际执行价格。我们证明，CLVR能以极小的计算成本构建近似最优的波动率最小化排序，且该结果易于被外部第三方验证。