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AAMM: The AAMM Automated Market Maker

Visual for AAMM: The AAMM Automated Market Maker

Consider the Paradigm logo as a graph, with every corner and intersection Ai representing a zero-fee Uni-V2-style constant product AMM between USDC and a wrapper token Zi. Each Ai is initialized with 1 USDC and 1 empty Zi, generating 1 LP token Li. Then each Zi is defined as a wrapper containing exactly 0.23456789 LP tokens Lj for each Aj connected to Ai on the graph, and initialized with the Lj created during the previous step. For example, in the diagram, 1 ZA contains 0.23456789 each of LB and LC. All pools are then opened for trading. How much USDC can you extract from this system?

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