Ending LP’s Losing Game: Exploring the Loss-Versus-Rebalancing (LVR) Problem and its Solutions
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 […]
DeFi
January 20, 2024
