Cover image
Blog icon0xTony
Oct 26

Ending LP's Losing Game: Exploring the Loss-Versus-Rebalancing (LVR) Problem and its Solutions

*Thanks to Yuki Yuminaga, Alex Nezlobin, Eugene Chen, Anthony Lee Zhang, Atis, Ludwig@Sorella Lab, and Max Resnick for great discussions and feedback.*Key Takeaways:LVR is important because 1) it disincentivizes AMM LPs from providing liquidity to the pool, and 2) it leads to the centralization of block building because searcher-builders who are performing CEX-DEX arbitrages can generate far more valuable blocks than neutral builders due to their exclusive orderflow.There are broadly two desi...

Most popular by 0xTony

Cover image

Ending LP's Losing Game: Exploring the Loss-Versus-Rebalancing (LVR) Problem and its Solutions

0xTony

Written by
0xTony
Subscribe

2025 Paragraph Technologies Inc

PopularTrendingPrivacyTermsHome
Search...Ctrl+K

0xTony

Subscribe