This is the latest installment in a series of posts by 0xfbifemboy about the design, performance, and utility of concentrated liquidity and AMMs. Introduction Originally, with fully ambient, constant-product AMMs such as Uniswap V2, liquidity providers (LPs) only had one choice to make in any given liquidity pool: what percentage of…

This post is a new installment in an ongoing series by 0xfbifemboy on Uniswap liquidity pools, concentrated liquidity, and fee dynamics. Many thanks to @thiccythot_, 0x94305, and 0xShitTrader for very helpful comments and discussion throughout the preparation of this article. Introduction Recently, there has been a great deal of discussion around…

This is the fourth in a series of multiple posts about dynamic fee policy for AMM liquidity pools. In the previous post in this series, we constructed a dynamic fee policy for ETH/USDC liquidity that cleanly outperforms all three of Uniswap’s static fee tiers. However, we also noted that our…

This is the third in a series of multiple posts about dynamic fee policy for AMM liquidity pools. Previously, we explored the dynamics of Uniswap ETH/USDC fee accrual across the three static fee tiers by looking at extremely low-resolution data (one snapshot every 10k blocks). We found that it was…

This is the second in a series of multiple posts about dynamic fee policy for AMM liquidity pools. In a previous post, we laid out an empirical framework for construction of a ETH/USDC dynamic fee policy. This article builds on that empirical framework by looking at low-resolution (one snapshot every…

This is the first in a series of multiple posts about dynamic fee policy for AMM liquidity pools. It is well understood that Uniswap V3 liquidity providers are at best inconsistently profitable. Furthermore, analyses we performed several months ago demonstrated that even when conducting detailed, per-wallet analyses, systematic predictors of…

This is the fifth in a series of posts by 0xfbifemboy on the performance of concentrated liquidity. Note on TerraUSD (UST): This post was written before the depegging of UST in the second half of May 2022. As such, some of the figures in this post will show UST as…

This is the fourth in a series of posts by 0xfbifemboy on the performance of concentrated liquidity. Introduction In a set of prior analyses, we examined the behavior and characteristics of ETH/USDC liquidity providers across three different Uniswap V3 liquidity pools, namely, the Ethereum mainnet 0.3% and 0.05% fee pools as…

This is the third in a series of posts by 0xfbifemboy on the performance of concentrated liquidity. Introduction In a previous post, we examined the dynamics of ETH/USDC liquidity provisioning on Uniswap V3. Focusing on the liquidity pool with a 0.3% swap fee, which is the highest TVL pool on Uniswap…