Git-Mirrors/mev-toolkit
1
0
Fork 0
mirror of https://github.com/autistic-symposium/mev-toolkit.git synced 2025-04-27 19:26:15 -04:00
Code Issues Packages Projects Releases Wiki Activity

Update just-in-time.md

Browse Source
This commit is contained in:
mia von steinkirch, phd 2022-12-21 18:27:46 -08:00 committed by GitHub
parent f70d715fd2
commit d80ac0814a
No known key found for this signature in database
GPG Key ID: 4AEE18F83AFDEB23
1 changed files with 9 additions and 1 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

10
uniswap/uniswap-v3/just-in-time.md
View File

@ -7,8 +7,16 @@
* uniswap v3 allows LPs to provide concentrated liquidity within smaller price ranges.
* jit liquidity is a form of liquidity provision where an LP mints and burns a concentrated position immediately before and after a swap.
* because provision has significant costs, it's usually only used against very large swaps
##### on mev
* jit liquidity is provided by MEV searchers who scan the mempool for substantial pending trades, adding and withdrawing an LP position within the same block. sophisticated searchers can add and remove concentrated liquidity on sandwich trades.
* using uniswap v3’s concentrated liquidity, the position’s range can be defined to match the trade in order to poach an amplified portion of the trading fees.
* hit liquidity avoids exposure to impermanent loss by its very nature since it is added and removed within the same block.
* jit lps face competition in mev auction market - the price improvement provided by jit liquidity should be capped by twice the fee rate of the pool that jit occurs in.
* sophisticated searchers can add and remove concentrated liquidity on sandwich trades.
<br>