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Automated Market Maker in Peer-to-peer Energy Trading: A Novel Approach to Decentralized Market

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Resumo(s)

Sustainable consumption and energy production is a subject of rising importance given the current global climate change agenda. Here is where Peer-to-peer electricity trading plays an important role, as it incentivizes consumers to become prosumers and produce energy by investing in photovoltaic panels, lowering their costs and reducing peak demand. However, there are still challenges in the adoption of this technology, more specifically: a trading platform without central authorities that market participants can trust with real-time supply and demand clearance. To address these issues, this research proposed an Automated Market Maker based on the Ethereum blockchain, which would take care of it all together, given that it clears the market by itself, providing fair trading based on real-time supply and demand. Furthermore, given its nature in the blockchain, it provides a decentralized secure and transparent platform. The results were achieved through a fork of both Uniswap V2 and V3 to compare which performed better, through scripts that inserted data of solar energy consumption and generation, transforming it into trades later in the decentralized exchange. After two different market simulations, it was possible to see that Uniswap V3 performed better, due to the concept of concentrated liquidity, which allowed prosumers to only provide liquidity in the interval to which the price is beneficial to them and to consumers.

Descrição

Dissertation presented as the partial requirement for obtaining a Master's degree in Statistics and Information Management, specialization in Risk Analysis and Management

Palavras-chave

Peer-to-peer Energy Trading Blockchain Automated Market Maker Design Photovoltaic Solar Energy SDG 7 - Affordable and clean energy SDG 11 - Sustainable cities and communities

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