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How Do AMMs Affect the Pricing of Derivative Tokens?

They provide continuous liquidity, with the pool's supply/demand ratio determining the immediate price, which may deviate from the theoretical fair value.
Greeks.Live06.11.25

How Do AMMs Affect the Pricing of Derivative Tokens?

AMMs provide immediate liquidity for derivative tokens (like tokenized options or perpetuals) by allowing continuous trading against a pool. The AMM's formula dictates the price based on supply and demand within the pool, which can sometimes deviate from the theoretical fair price due to pool imbalance or low liquidity.

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