The Tie Research
Replicated Market Makers: Oracle-Free DeFi
By Vaish Puri
April 18, 2023
- LPs get the ability to choose when impermanent loss beings
- LPs have the direct ability to choose their level of volatility
- LPs earn fees as the pool gets closer to the expiration
- The pool’s liquidity was not balanced
- Realized volatility is lower than the curve’s implied volatility
- Liquidity in a pool is too small for trades to occur
- Liquidity in the pool does not create enough profitable opportunities for arbitrageurs to trade
- The pool is not integrated into the DEX well enough to be recognized by arbitrageurs
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