The Impermanent Loss Rate of the Uniswap v3 AMM

Some Caveats

In a previous post, I considered how one might use the impermanent loss rate for liquidity pool investing. More specifically, I used the heuristic: Net APY = Nominal APYImpermanent Loss Rate. (Nominal APY was estimated simply by dividing historical fees by the liquidity pool TVL.)

References

Hull, John. Options, futures, and other derivatives. Boston: Pearson, 2015. Print. (See Appendix to Chapter 15)

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