Create just-in-time_liquidity.md

This commit is contained in:
mia von steinkirch, phd 2022-11-17 18:21:28 -08:00 committed by GitHub
parent e392a2c2ed
commit f87e11c7a8
No known key found for this signature in database
GPG Key ID: 4AEE18F83AFDEB23

View File

@ -0,0 +1,14 @@
## Just-in-time liquidity
<br>
* 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
* 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.
<br>
### resources
* [uniswap's jit liquidity](https://uniswap.org/blog/jit-liquidity)