Unified Approach for Hedging Impermanent Loss of Liquidity Provision

We develop static and dynamic approaches for hedging of the impermanent loss (IL) of liquidity provision (LP) staked at Decentralised Exchanges (DEXes) which employ Uniswap V2 and V3 protocols. We provide detailed definitions and formulas for computing the IL to unify different definitions occurring...

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Veröffentlicht in:	arXiv.org 2024-07
Hauptverfasser:	Lipton, Alexander, Lucic, Vladimir, Sepp, Artur
Format:	Artikel
Sprache:	eng
Schlagworte:	Characteristic functions Dynamic models Hedging Liquidity Options markets Put & call options Risk management Staking Static models Stochastic models Valuation
Online-Zugang:	Volltext
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