2024/12/12 by A Gonzalez, González, Agustín Muñoz, Juan I. Sequeira y Ariel Dembling +1
Business, Management and Accounting · Economics, Econometrics and Finance · #Financial Reporting and Valuation Research #Capital Investment and Risk Analysis
paper · pdf · doi:10.48550/arxiv.2412.09662
This article analytically characterizes the impermanent loss for automatic\nmarket makers in decentralized exchanges such as Uniswap or Balancer (CPMM). We\npresent a theoretical static replication formula for the pool value using a\ncombination of European calls and puts. We will formulate a result to guarantee\ncoverage for any final price that falls within a predefined range.\n