Speaker: Michele Fabi
Date: Feb 21, 2025
Time: 12:15-1:45pm
Location: Rice Hall 109
Title: Efficient Online Learning and Equilibrium Computation in Non-Concave Games
Abstract:
We examine the design challenges and opportunities of Automated Market Makers (AMMs) for energy trading in local smart grids. Building on Uniswap V2, we progressively introduce modifications that yield an ideal pool-based pricing mechanism. Specifically, our proposed AMM uses concentrated liquidity to prevent arbitrage with the main grid, batch execution to ensure fairness, a quasi-concave bonding curve to achieve peak shaving, and linear of cost and revenue functions to guarantee coalition-proofness. These design choices lead to an AMM that quotes an energy price equal to the geometric mean of the grid’s bid and ask prices, adjusted by an over-provision penalty. We illustrate the AMM’s performance with numerical examples and conclude by comparing it to alternative market mechanisms.
Bio:
Michele Fabi is an Assistant Professor in Economics affiliated at Télécom Paris, the Center for Research in Economics and Statistics (CREST) and Institut Polytechnique de Paris (IP Paris). His research is mostly focused on Financial Economics, Industrial Organization, and Microeconomics, and covers topics such as decentralized and startup finance, energy markets, and blockchain.
Michele is currently working on a mechanism design project focused on optimal peer-to-peer energy trading in smart grids. His previous work also covers the design of crowdfunding platforms, blockchain consensus protocols, and automated market makers (AMMs) for digital asset exchange. These projects underscore his commitment to exploring how innovative technologies can shape the economy and society more broadly, with a particular focus on sustainability and decentralization.
Before joining Télécom Paris, Michele was a postdoctoral fellow at École Polytechnique under the Blockchain@Polytechnique academic chair. Michele earned his PhD in 2021 from the IDEA doctoral program at Universitat Autonoma de Barcelona.