English

Replica del valor de un pool (CPM) y hedging de perdidas impermanentes

Mathematical Finance 2024-12-16 v1 Risk Management

Abstract

This article analytically characterizes the impermanent loss for automatic market makers in decentralized exchanges such as Uniswap or Balancer (CPMM). We present a theoretical static replication formula for the pool value using a combination of European calls and puts. We will formulate a result to guarantee coverage for any final price that falls within a predefined range.

Keywords

Cite

@article{arxiv.2412.09662,
  title  = {Replica del valor de un pool (CPM) y hedging de perdidas impermanentes},
  author = {Agustín Muñoz González and Juan I. Sequeira y Ariel Dembling},
  journal= {arXiv preprint arXiv:2412.09662},
  year   = {2024}
}

Comments

4 pages, in Spanish language, 2 figures