Category: DeFi

Abstract Many modern economic services reflect the importance of the time value of money. Services from payday loans to complex cross-border supply chain financing seek to offer customers flexible solutions to optimize cash flow. Blockchain-based solutions have already begun to enable more timely, efficient, and democratic provision of these crucial services under the collective name […]

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 design philosophies to […]