diff --git a/uniswap/uniswap-v3/just-in-time.md b/uniswap/uniswap-v3/just-in-time.md index 694ec91..c4170bd 100644 --- a/uniswap/uniswap-v3/just-in-time.md +++ b/uniswap/uniswap-v3/just-in-time.md @@ -12,6 +12,21 @@ * because provision has **high costs**, it's usually only used against very large swaps (i.e., it's a non-atomic strategy). +<br> + +### example cex + dex + +<br> + +1. consider a JIT LP that has ETH and USDC both in a wallet and in a CEX. +2. when the LP observes a large ETH -> USDC swap in the mempool, they deploy a LP position on Uniswap, and at the same time submit an ETH buy order on the CEX. +3. after both trades, the LP has the same total amount of ETH and USDC as before. +4. assuming that the following holds, the LP are also profitable: + +``` + fees_DEX + price_impact_DEX > fees_CEX + price_impact_CEX +``` + <br>