Research
What Stock Pairs Can Tell Us About AMM Pair Choice
Traditional stock pair statistics translated into impermanent loss and arbitrage loss, applied to tokenized stock candidates, stock and index pairs, and S&P 500 sectors.
The Fee Switch: A Walkthrough
Uniswap governance turned on protocol fees for v4 pools. The official line is that the fee is "additive" — traders pay a little more, LPs keep earning what they always did. This walkthrough shows exactly what that claim misses, focusing on arbitrage flow.
A Novel Design for a Multi-Token Concentrated Liquidity Pool
A novel design for a multi-token concentrated liquidity pool.
DLMM vs V3 against an arbitrageur
How discrete liquidity (DLMM) and concentrated liquidity (Uniswap V3) compare when facing arbitrage.
Constant-Leverage Tokens, a primer
Why constant-leverage tokens decay on round trips — a walkthrough of volatility drag and path dependence.
Option Pricing from Distributions
A non-technical route to Black–Scholes, implied volatility, and the smile — built from probability distributions alone.
Transaction Costs, Liquidity, and Fee Retention in AMMs
An interactive deep-dive into how transaction costs interact with liquidity provisioning and fee retention dynamics in AMMs.
Impermanent Loss: The Delta Mismatch View
Understanding impermanent loss as a delta mismatch problem — how AMM positions diverge from simple holding and what that means for liquidity providers.
The Complete Picture: LVR, IL, and the Fee-Arb Decomposition in AMMs
A unified interactive exploration of IL, arbitrage loss, and fee dynamics in AMMs — bringing together the complete picture of liquidity provision costs and returns.
IL and LVR: Same Mean, Different Worlds
An interactive deep-dive into how IL and LVR share the same expected value but exhibit fundamentally different distributional properties.
How Fees Change the Dynamics of Arbitrage
Explore how trading fees create no-arbitrage bands, change profit calculations, and fundamentally alter the dynamics of arbitrage in AMMs through interactive visualizations.
Understanding AMM Liquidity Through Greeks
Liquidity provision is not passive yield. It is a risk-bearing market-making position. Impermanent loss reflects a delta-path difference from the benchmark. LVR is short gamma. Fees are time compensation, not risk-free yield. Viewed this way, AMMs are simply trading strategies, not yield farms.
Who Pays for Arbitrage? A Deep Dive into AMMs and Liquidity Asymmetry
Arbitrage between two constant product liquidity pools benefits the trader but imposes a cost on liquidity providers. This cost, known as impermanent loss or loss-versus-rebalancing (LVR), is borne unevenly depending on each pool’s liquidity depth. Pools with less liquidity pay more of the price adjustment, effectively funding the arbitrageur’s profit. This dynamic explains why centralized exchanges (CEXs) with massive liquidity can efficiently arbitrage decentralized exchanges (DEXs), leaving DEX liquidity providers to absorb most of the cost.
Understanding Uniswap V3 Math: A Practical Example
A comprehensive analysis of Uniswap V3 liquidity mechanics with mathematical examples showing how token reserves change with price movements.