Automated Market Makers: Toward More Profitable Liquidity Provisioning Strategies DOI

Thanos Drossos,

Daniel Kirste, Niclas Kannengießer

et al.

Proceedings of the 37th ACM/SIGAPP Symposium on Applied Computing, Journal Year: 2025, Volume and Issue: unknown, P. 358 - 365

Published: March 31, 2025

To trade tokens in cryptoeconomic systems, automated market makers (AMMs) typically rely on liquidity providers (LPs) that deposit exchange for rewards. profit from such rewards, LPs must use effective provisioning strategies. However, lack guidance developing strategies, which often leads them to financial losses. We developed a measurement model based impermanent loss analyze the influences of key parameters (i.e., pool type, position duration, range size, and size) strategies LPs' returns. reveal those profits, we used 700 days historical provision data Uniswap v3. By uncovering profitability, this work supports more profitable

Language: Английский

Automated Market Makers: Toward More Profitable Liquidity Provisioning Strategies DOI

Thanos Drossos,

Daniel Kirste, Niclas Kannengießer

et al.

Proceedings of the 37th ACM/SIGAPP Symposium on Applied Computing, Journal Year: 2025, Volume and Issue: unknown, P. 358 - 365

Published: March 31, 2025

To trade tokens in cryptoeconomic systems, automated market makers (AMMs) typically rely on liquidity providers (LPs) that deposit exchange for rewards. profit from such rewards, LPs must use effective provisioning strategies. However, lack guidance developing strategies, which often leads them to financial losses. We developed a measurement model based impermanent loss analyze the influences of key parameters (i.e., pool type, position duration, range size, and size) strategies LPs' returns. reveal those profits, we used 700 days historical provision data Uniswap v3. By uncovering profitability, this work supports more profitable

Language: Английский

Citations

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