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teleo-codex/entities/internet-finance/metadao-develop-amm-program-for-futarchy.md
Teleo Agents b9fa48b671 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 3)

Pentagon-Agent: Rio <HEADLESS>
2026-03-12 06:52:37 +00:00

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type entity_type name domain status parent_entity platform proposer proposal_url proposal_account proposal_number proposal_date resolution_date category summary budget tracked_by created
entity decision_market MetaDAO: Develop AMM Program for Futarchy? internet-finance passed metadao futardio joebuild https://www.futard.io/proposal/CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG CF9QUBS251FnNGZHLJ4WbB2CVRi5BtqJbCqMi47NX1PG 4 2024-01-24 2024-01-29 mechanism Migrate MetaDAO futarchy markets from CLOB to AMM architecture to improve liquidity, reduce manipulation risk, and eliminate state rent costs 400 META on passing, 800 META on completion rio 2026-03-11

MetaDAO: Develop AMM Program for Futarchy?

Summary

Proposal to replace Central Limit Order Book (CLOB) implementation of futarchy markets with Automated Market Maker (AMM) architecture using liquidity-weighted price over time as settlement metric. Addresses three CLOB limitations: lack of liquidity due to pricing uncertainty, manipulation vulnerability through midpoint pushing and wash trading, and 3.75 SOL per market pair in non-recoverable state rent costs.

Market Data

  • Outcome: Passed
  • Proposer: joebuild
  • Budget: 400 META on passing proposal, 800 META on completed migration
  • Timeline: 3 weeks development + 1 week review
  • Resolution: 2024-01-29

Technical Specification

AMM Design:

  • Liquidity-weighted average price over lifetime as settlement metric
  • 3-5% swap fees to incentivize LPs and discourage wash trading
  • Integration with autocrat + conditional vault programs
  • Permissionless pause/close functions for post-verdict settlement

Additional Features:

  • Loosen 50-slot restriction on proposal creation timing
  • Auto-revert to fail after X days if proposal instructions fail
  • Remove 1 META minimum order size (CLOB spam filter no longer needed)

Team:

  • Program: joebuild
  • Review: TBD expert
  • Frontend: 0xNalloK

Significance

First major architectural change to MetaDAO's futarchy implementation since launch. Represents shift from orderbook to AMM primitives for conditional token markets, with implications for all futarchy implementations. Economic motivation (135-225 SOL annual state rent savings) combined with mechanism design improvements (manipulation resistance, liquidity bootstrapping).

Risks Identified

  • Standard smart contract risk
  • Uncertain LP adoption: "similar to an orderbook, available liquidity will be decided by LPs. AMMs will incentivize LP'ing, though adoption within the DAO is not a certainty"
  • Migration complexity for existing markets

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