Bell Curve The LP Profitability Problem: LVR, Dynamic Fees and Auctions | Season 6 Episode 2
Season 6 | Episode 2
In this season's first guest interview we dive into the world of LVR. We are joined by Alex and Jason to unpack key elements of LVR including what it is, mitigation methods including auctions and dynamic fees, and why solving LVR is important. They discuss what 3 sources of information are key to understanding LVR and explore the impacts of transferring wealth from token stakers to LPs.
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Timestamps:
(00:00) Intro
(01:18) Main Interview Start: Alex & Jason
(01:31) What is LVR?
(07:56) 3 Sources of Information
(11:12) “Maverick Ad”
(12:27) 3 Sources of Information
(13:31) Mitigating LVR Methods
(25:40) Dynamic Fees
(38:50) Discriminating Types of Traders
(48:11) Auctions for Mitigating LVR
(52:49) Transferring Wealth to LPs
(56:57) Why is LVR Important?
(1:02:05) Outro
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Resources:
Automated Market Making and Loss-Versus-Rebalancing (Jason Paper)
https://arxiv.org/abs/2208.06046
How Discount Brokerages Make Money by Patrick McKenzie
https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/
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Disclaimer: Nothing said on Bell Curve is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Mike, Jason, Michael, Vance and our guests may hold positions in the companies, funds, or projects discussed.