Currently, most fees in v3 are generated in US NYSE hours, if international stocks/assets are brought on chain, then with a v4 hook I can move the capital 4 times in a day from New York, to Tokyo, to New Delhi, to London with the same $100. Time-based efficiency.

New blog post: Bancor Is Flawed. hackingdistributed.com/2017/…

you've heard of am-AMM but next week I'm releasing my new paper on amm-am-AMM-AMMs

Congrats to the 9% of people who got this right 😁 A > B > D > C Three notes: - addition of the fee makes the ‘k’ invariant increase more than liquidity - splitting the trade 50:50 is the worst outcome - B is *slightly* greater than D because of the extra liquidity from the fee

Why is LVR important? In this week's episode @danrobinson, @0x94305, and @jason_of_cs weighed in on why LVR is critical for the future of DeFi.

There's a new EIP to increase Ethereum's throughput by 50%. - 12 second block times -> 8 seconds - 6 data blobs per block -> 9 blobs per block - DEXes become around 1.22x more efficient If approved, this would be a huge first step in improving Ethereum L1's performance.

1/ A thread on the results of the Yield Golfing match between @A51_Fi and @GammaStrategies in collaboration with @nul_exception. The tokens selected for this experiment were $CRV and $ETH. Let's see how both protocols performed below.

When I confronted BTC maximalists about ETH in 2015 They dismissed it out of hand because of centralization & low usage Which is exactly how ETH maxis dismisses all of their competitors right now! Blinding them to the future until it is too late, dulling their competitive edge

I have a hard time believing this argument. Uniswap's main value proposition is that you can just go and get a trade done in 30 seconds without thinking about it. A uniswap chain or even rollup makes no sense in that context. A copy of uniswap on every rollup does.

How to choose the gas limit? 🤔 The Uniswap devs have come with another goodie: compute it as a portion of `block.gaslimit`! This allows to have complex external call logic on chains with gigagas, and to effectively limit gas griefing attacks elsewhere.

Could someone please explain to me, as you might to a young child, or a golden retriever, how more volume for an AMM would be bad, regardless of whether it is toxic? Say for example you have two pools, A and B, of ETH-USDC. 'A' gets 100m of volume over a year and 'B' that gets 1m. A has 99% toxic flow and B has 0% toxic flow. Do the LPs of A even care? After a year the IL of the pools is the same right? This is not an attempt to dunk on uniswap or participate in this feud, im just curious. Toxic flow has to matter to some extent but I dont understand how.

In other words, there is a cost to running a rebalancing strategy which may be impractical, inaccessible, or an otherwise undesirable energy sink for potential LPs. Given that that cost also affects the bottom line of active LPs, it should be factored into the formula for LVR.

I don't think there's anything wrong with Uni charging 0.15% for a frontend (high quality, reliable frontends are not cheap or easy). But can we admit that if app alone is worth 15 bps, 5 bps pools were a mistake? (Especially when its the default on most pairs)

The State of MEV by @ballsyalchemist

Curious about what drives execution quality on DEXs? Check out our new research for @UniswapFND, including the results of our slippage simulation analysis! This article covers pricing on Uniswap and other DEXs, the effect of fees, and details on UniswapX gauntlet.xyz/resources/unisw…

Uniswap puzzle #2 Worst-case situation for an AMM: there's only arbitrage volume in a volatile pool, with prices modeled by GBM. Arbitragers make money with every swap. Can a strategic LP still expect to beat HODL? Ignore tx costs and swap-to-rebalance costs for simplicity.

Part 1: On DEXs DEX growth, value creation, fee distribution, and an analysis of UNI and CRV. bit.ly/3WDgEaU

Introducing the auction-managed AMM! A new AMM design that: ⚖️ Reduces LVR ⚙️ Optimizes swap fees 📈 Smooths LP returns 🌊 Should attract higher liquidity than any fixed-fee AMM New paper with @ciamac (@paradigm / @Columbia_Biz) and @aadams @saraareynolds (@Uniswap)

I gave up on this a while ago lol Numbers show it’s fee on transfer tokens + some tools for things like liquidity locking and staking rewards that only support v2 New goal: make v4 full range better than v2

📊 Delving deep into the world of liquidity provision! Algebra's latest research analyzes the LPs profitability in the AMM landscape, considering market conditions, blockchain unique features & fee structures. 💰 Explore innovative fee management approaches, including a dynamic fee mechanism, & uncover insights shaping the future of AMM development. Find the must-read for DEXes & DeFi Protocols at algebra.finance/static/the-i…

UPDATE: We're happy to share that over the past 3 mo. ALL delegated delegates at @Uniswap DAO (as part of the prev. passed initiative) have an outstanding 100% voting participation rate. 💯 We believe this proves that accountability and rewarding responsible delegates leads to more active and safe governance. 🤝 h/t @wintermute_t @404DAO @PGovTeam @keyrock @karpatkey @atiselsts_eth nitter.app/StableLab/status/17357…

With @uniswap releasing v4 (w/ hooks) later this year, there has been a lot of talk about what a dynamic fees might look like. Here we propose one possible structure. Introducing: The Null Fee github.com/subtrahend-labs/r…

1/ Loss versus rebalancing (LVR) is arguably the biggest (application layer) problem for DeFi on Ethereum. Traditional AMMs are inefficient, and for the next generation of AMMs, the alpha of AMM design is LVR.

I haven’t used a CEX in what feels like ages. Over the past four years, I barely used CEXs in general and it’s never been a real issue for me. But recently it has become a bit of a problem. Getting my fills onchain used to be seamless, there was always ample liquidity for most tokens due to pool2 incentives, etc. Nowadays it’s just 3 market makers holding all the inventory and quoting below price onchain while all the liquidity and activity is on centralized exchanges. If this trend continues it will require a serious effort for a person to be able to get a legitimate quote onchain. Right now it appears the only way to get legit quotes for tokens is to send limit orders through cowswap/1inch/Uniswap and hope that they get filled once they’re stale compared to true price. Otherwise you can forget about market orders for tokens because there simply is no liquidity onchain. The only way to bring liquidity onchain is to simulate some premium to pull liquidity into your bid from CEXs. I really hope this trend changes as we move activity to L2s. It is as really a mistake for projects to abandon onchain liquidity and liquidity mining and go for strictly centralized market makers. On L1 with 12sec block times I’ll give the LVR proponents the benefit of the doubt and say it’s somewhat “justified” But on L2 with <1sec blocktimes, there is literally no excuse.

Is your liquidity at risk? We know it’s a volatile market and the fear of losing your funds due to impermanent loss is constant. Although the IL cannot be ‘solved’, it can be minimized. Be it market-specific or AMM-specific. Wondering what’s the difference? Check: a51-fi.medium.com/impermanen… Now what you can do is to either: 1. 🧐Manage manually by keeping an eye on the highly volatile market OR 2. 😌Be in control, sit back, and relax, in other words, use A51 Finance A51 Finance empowers you to: 1. 🛠DIY LP strategies 2. 🎮Remote control your liquidity A liquidity position that you create AND control to minimize the market-specific IL risks. The A51 toolkit lets you: 1. Choose a market mode of your choice. Based on your price speculation and market volatility, customize how you want your assets to move in the pool. - 🐂 It could be towards the increasing asset price or the bull mode - 🐻 Trail the decreasing asset price and guard liquidity from sudden price drops, the bear mode - ↔️ Auto-adjusting when volatility is high, the sideways mode - ⏯️ Spread in a tick, the static mode 2. Craft a strategy to rebase your liquidity that automatically adjusts token supply based on the changing market prices. - Set how much deviation from the current price will trigger a rebase - The time passed before executing a rebase, and - How many times you want to rebase before deactivating your liquidity 3. Distribute liquidity between ticks. Whether it’s: - Exponential (symmetrical, skewed left or right) - Flat OR - In a single tick 4. Create your own exit strategy and exit your position with maximum gains. - Set a price as an exit preference - Time to exit - Number of price hits before you exit - Converting liquidity into a single asset, and - Reverse liquidation For a deeper understanding here is our whitepaper: a51-finance.gitbook.io/a51-f…

New paper co-authored by @atiselsts_lv & @kklas formalizes key principles of leverage in concentrated liquidity, featuring @kai_finance_sui Leverage protocol implementation on #Sui - aimed at enhancing capital efficiency and safety in #DeFi. Full paper 👉 bit.ly/kai-cll

New research from @aadams shows L2s aren’t just good for gas savings Compared to Ethereum, the data shows that on L2s: ✅ 97.5% of swappers get better pricing ✅ LPs see ~20% larger arbitrage returns ✅ Low gas leads to more capital efficiency rb.gy/6flvm0

1/9 InfinityPools (@InfPools) is a new DeFi protocol that allows leverage trading with no oracles and no risk of liquidations. How is this possible? Where do the payoffs for the leverage traders come from, and who is their counterparty? A 🧵.

We're thrilled to announce winners of the first Atrium hookathon 🏆 55 devs from cohort 1 spent 2 intensive weeks hacking together on 36 creative hooks🪝 Thanks @UniswapFND, @eigencloud, & @brevis_zk for sponsoring $28k in prizes 💰 p.s. stay tuned tomorrow for demo videos 👀

New @arbitrum research post: Why fast L2 block time is important; how Arbitrum provides blocks so quickly; and what comes next. research.arbitrum.io/t/the-p…