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teleo-codex/entities/internet-finance/metadao-develop-amm-program-for-futarchy.md
Teleo Agents 94bf5769a0 rio: extract from 2024-01-24-futardio-proposal-develop-amm-program-for-futarchy.md 
- Source: inbox/archive/2024-01-24-futardio-proposal-develop-amm-program-for-futarchy.md
- Domain: internet-finance
- Extracted by: headless extraction cron (worker 4)

Pentagon-Agent: Rio <HEADLESS>
2026-03-12 04:43:45 +00:00

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type entity_type name domain status parent_entity platform proposer proposal_url proposal_date resolution_date category summary key_metrics tracked_by created
entity decision_market MetaDAO: Develop AMM Program for Futarchy? internet-finance passed metadao futardio joebuild https://www.futard.io/proposal/CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG 2024-01-24 2024-01-29 mechanism Proposal to replace CLOB-based conditional markets with AMM implementation using liquidity-weighted pricing
budget timeline state_rent_savings
400 META on passing, 800 META on completion 3 weeks development + 1 week review 135-225 SOL annually
rio 2026-03-11

MetaDAO: Develop AMM Program for Futarchy?

Summary

Proposal #4 to develop an Automated Market Maker (AMM) program to replace Central Limit Order Books (CLOBs) in MetaDAO's futarchy implementation. The AMM would use liquidity-weighted price over time as the settlement metric, reducing state rent costs from 3.75 SOL per proposal to near-zero while addressing liquidity and manipulation concerns.

Market Data

  • Outcome: Passed
  • Proposer: joebuild
  • Created: 2024-01-24
  • Completed: 2024-01-29
  • Budget: 400 META on passing proposal, 800 META on completion

Technical Scope

Program changes:

  • Write basic AMM tracking liquidity-weighted average price over lifetime
  • Incorporate AMM into autocrat + conditional vault
  • Feature to permissionlessly pause AMM swaps and return positions after verdict
  • Feature to permissionlessly close AMMs and return state rent SOL
  • Loosen time restrictions on proposal creation (currently 50 slots)
  • Auto-revert to fail after X days if proposal instruction fails

Frontend integration:

  • Majority of work by 0xNalloK
  • Testing on temporary subdomain before migration

Team:

  • joebuild (program development)
  • 0xNalloK (frontend)
  • TBD (program review)

Significance

This proposal represents a fundamental architectural change in MetaDAO's futarchy implementation, moving from order-book to AMM-based conditional markets. The decision reveals three core problems with CLOB-based futarchy:

  1. Liquidity problem: Wide uncertainty about future token value discourages limit orders near midpoint
  2. Manipulation susceptibility: 1 META can move midpoint in wide spreads; VWAP vulnerable to wash trading
  3. State rent costs: 135-225 SOL annually at 3-5 proposals/month

The AMM solution uses liquidity-weighted pricing (not TWAP or VWAP) combined with 3-5% fees to make manipulation expensive while incentivizing LP provision. This is the first production implementation of AMM-based futarchy.

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