Episode Details

This story was originally published on HackerNoon at: https://hackernoon.com/in-defis-most-popular-market-design-liquidity-providers-are-still-losing.
A quantitative study of optimal liquidity provision in Uniswap v3, showing why LPs lose money and how dynamic strategies outperform.
Check more stories related to tech-stories at: https://hackernoon.com/c/tech-stories. You can also check exclusive content about #defi-market-trends, #defi-market-making, #algorithmic-trading, #uniswap-v3, #amm-liquidity-risk, #concentrated-liquidity, #defi-market-microstructure, #hackernoon-top-story, and more.

This story was written by: @exitstrategy. Learn more about this writer by checking @exitstrategy's about page, and for more stories, please visit hackernoon.com.

This paper models optimal liquidity provision in concentrated AMMs, showing how LPs can dynamically adjust range width and skew to balance fees, predictable loss, and concentration risk—and outperform typical Uniswap v3 LPs.