Efficient Blockchain Peer-to-Peer Energy Trading Based on Automated Market Makers
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In this work, we explore the use of Automated Market Makers (AMMs) for peer-to-peer energy trading in a retail energy market to promote distributed renewable energy resources. We implement three fundamental AMM mechanisms with different pricing curves: Constant Sum, Constant Product, and Concentrated Liquidity, and comparatively benchmark their performance in terms of throughput, latency, and gas consumption. In addition, we simulate the three energy market models using real-world household energy data. Our experimental results show that the Constant Product market maker achieves slightly higher throughput, but incurs the highest gas cost among the three. The simulation results further indicate that the Concentrated Liquidity market maker performs better than the others in stabilizing pool prices under the same level of liquidity provision.