THREAD ๐
It's time to talk about LP tokens.
The pricing of LP tokens is wrong.
You should be getting a higher return on LPs . The market for liquidity isn't clearing.
@behodlerAMM
white paper outlines a theory on liquidity pricing and how to fix it.
This is the TL;DR
1/16
@0x94305 Ah, cryptographic cliffhanger :(
One question: you said LP losses are proportional to volatility. Is that effect independent of the fee revenue earned from volatility?
@ibzpetkar @ItsMeOhHeyMatty @BehodlerAMM This sounds interesting. I like the way LP providers of volatile assets are protected. Too much stablecoin bias in DeFi. Maybe Limbo will become an implicit startup incubator.
Flan, Limbo and SCX are all unique in DeFi. A rigorous exploration of monetary policy helps form a set of easy to measure guidelines for governance so that Limbo can hit the ground running.
https://t.co/1r6KQUPOlu
#DeFi#Limbo $Eth $SCX $Flan #Ethereum