"their strategies mainly allocate liquidity in a narrow range and adjust the tick intervals to track market price based on quantitative indicators such as bollinger bands"

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dr. mia von steinkirch, phd 2023-02-10 15:32:57 -08:00 committed by GitHub
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* the **liquidity range** determines the share of fees. however, the tighter the tick range, the greater the risk of impermanence loss (the greater the likelihood that the price of the asset pair will move out of the tick range to volatility), which would generate no fees). * the **liquidity range** determines the share of fees. however, the tighter the tick range, the greater the risk of impermanence loss (the greater the likelihood that the price of the asset pair will move out of the tick range to volatility), which would generate no fees).
* a **strategy** is to scan the mempool for substantial pending trades, provide liquidity where a LP mints and burns a concentrated position immediately before and after a swap. no impermanent loss happens because everything happens within the same block. * a **strategy** is to scan the mempool for substantial pending trades, provide liquidity where a LP mints and burns a concentrated position immediately before and after a swap. no impermanent loss happens because everything happens within the same block.
* because provision has **high costs**, it's usually only used against very large swaps (i.e., it's a non-atomic strategy). * because provision has **high costs**, it's usually only used against very large swaps (i.e., it's a non-atomic strategy).
* [*"their strategies mainly allocate liquidity in a narrow range and adjust the tick intervals to track market price based on quantitative indicators such as bollinger bands"*](https://mirror.xyz/0xc19565163aFdEe3783FC970E4Bd0275B11848d34/wr9JWZ_MIroWnXeze_tXG1R7nSsoTkp7IvqK5BsWYhA)
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