As AMMs quote “stale/sleepy” prices, a lot of arbitrage that happens can be labelled as “toxic flows” as LPs don’t realise - they’re selling the appreciating asset across all points from A to B
Can you eli5 the hedged LP positions - how can I create that payoff by shorting exactly the amount of ETH; LP is long?
As AMMs quote “stale/sleepy” prices, a lot of arbitrage that happens can be labelled as “toxic flows” as LPs don’t realise - they’re selling the appreciating asset across all points from A to B
Can you eli5 the hedged LP positions - how can I create that payoff by shorting exactly the amount of ETH; LP is long?