The Tension Between Divergence Loss and Profit in Automated Market Makers
In today’s post we take the perspective of a liquidity provider (LP) and ask: how much you can expect to earn by providing tokens to the reserve pools?
Cost of Price Manipulation in Uniswap and Balancer
Uniswap, Balancer, and Curve have achieved to construct purely peer-to-peer exchanges which do not require any intermediary, and attracted already many users. But it is important to bear in mind that things could go wrong when using these AMMs naively as a price oracles.