An Economic Model of a Decentralized Exchange with Concentrated Liquidity

The authors thank Lin William Cong (the editor), an anonymous associate editor, four anonymous referees, Matthieu Bouvard, Agostino Capponi, Campbell Harvey, Ruizhe Jia, Ciamac Moallemi, Christine Parlour, Talis Putnins, Adriano Rampini, Tim Roughgarden, Gideon Saar, Vish Viswanathan, and Anthony Zhang. The authors also thank conference participants at the 2025 American Economic Association Meetings and seminar participants at Duke University, the Federal Reserve Bank of Cleveland, Hanyang University, Maastricht University, Monash University, Seoul National University, Singapore Management University, Sungkyunkwan University, the Tinbergen Institute, the University of California at Santa Barbara, the University of Melbourne, the University of Oklahoma, the University of Sydney, Utrecht University, and Yonsei University for valuable comments.