Optimization of Impermanent Loss



As you may have seen in our previous article (if not, check it out here), liquidity pools represent a new way to trade cryptoassets and improve liquidity. However, by investing in these pools, liquidity providers face a new risk: impermanent loss. It represents the opportunity cost of participating in a liquidity pool versus a simple asset holding strategy.


Together with SwissBorg, we formalized this problem and we present in the paper below some optimization methods to better control this risk.


Kesitys_Swissborg_ImpermanentLoss
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