As an integral part of the decentralized finance (DeFi) ecosystem, decentralized exchanges (DEXs) with automated market maker (AMM) protocols have gained massive traction with the recently revived interest in blockchain and distributed ledger technology (DLT) in general. Instead of matching the buy and sell sides, automated market makers (AMMs) employ a peer-to-pool method and determine asset price algorithmically through a so-called conservation function. To facilitate the improvement and development of automated market maker (AMM)-based decentralized exchanges (DEXs), we create the first systematization of knowledge in this area. We first establish a general automated market maker (AMM) framework describing the economics and formalizing the system's state-space representation. We then employ our framework to systematically compare the top automated market maker (AMM) protocols' mechanics, illustrating their conservation functions, as well as slippage and divergence loss functions. We further discuss security and privacy concerns, how they are enabled by automated market maker (AMM)-based decentralized exchanges (DEXs)' inherent properties, and explore mitigating solutions. Finally, we conduct a comprehensive literature review on related work covering both decentralized finance (DeFi) and conventional market microstructure.

翻译：作为去中心化金融（DeFi）生态系统的核心组成部分，具有自动做市商（AMM）协议的去中心化交易所（DEX）随着近期区块链及分布式账本技术（DLT）的重新兴起而获得了广泛关注。自动做市商（AMM）并非匹配买卖双方，而是采用点对池（peer-to-pool）方法，通过所谓的守恒函数（conservation function）以算法方式确定资产价格。为促进基于自动做市商（AMM）的去中心化交易所（DEX）的改进与发展，我们首次在此领域构建了系统化知识体系。我们首先建立了一个通用自动做市商（AMM）框架，该框架描述了经济学机制并形式化了系统的状态空间表示。随后，我们利用该框架系统比较了主流自动做市商（AMM）协议的运作机制，阐释了它们的守恒函数以及滑点（slippage）和分歧损失（divergence loss）函数。我们进一步讨论了安全与隐私问题，探讨了这些风险如何由基于自动做市商（AMM）的去中心化交易所（DEX）的固有特性所引发，并探索了缓解方案。最后，我们对涵盖去中心化金融（DeFi）与传统市场微观结构的相关研究成果进行了全面文献综述。