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Is your feature request related to a problem? Please describe.
Currently, our implementation of replicated market makers only support approximating the x*y=k curve over an "infinite" liquidity range. As pointed by @hdevalence, this means that the position distribution is skewed at the extremes of this range:
ID State Fee Sell Price Reserves
plpid1t0yx3cn2fp72s7gy09ra4zrvx7nacc2ftpp85d5m7aqhffglv03suncr9a opened 42bps 10penumbra 740.967746gn
plpid1xt2vdazq9j4wpmpe29cj2rc2768k0hta9a32sk0j0h640l2c4gmsnswvp8 opened 42bps 5penumbra 243.814939gn
plpid1a5z05wwsvrc4hu9v4azw76d6m84837lvtvrtulgv6czlxpraxjmqkr9lwz opened 42bps 3.333334penumbra 189.311849gn
(snip)
plpid1vn7jydp9cx9vf7kuk7qcc7ff7qv3v4ftj3v3eujdn8rmytffuqas0ce9ca opened 42bps 2.800001gn 21.351881penumbra
plpid15jn60qg5s590kzu25qr7nxpe8ujkyg5h0mlsee94aa6ev205pv9sw2sxj0 opened 42bps 2.900001gn 20.256501penumbra
plpid1m5e8xchzl49td9s356ggge2e7e2vv3v4k7kywzssz2jtnc0ekktsnv5hj3 opened 42bps 3gn 1164.486839penumbra
It would be more capital efficient and just plain better to add a UniV3 concentrated liquidity replication that takes a price, an inventory, and a range, and builds the replicated portfolio corresponding to that curve.
The text was updated successfully, but these errors were encountered:
Is your feature request related to a problem? Please describe.
Currently, our implementation of replicated market makers only support approximating the
x*y=k
curve over an "infinite" liquidity range. As pointed by @hdevalence, this means that the position distribution is skewed at the extremes of this range:It would be more capital efficient and just plain better to add a UniV3 concentrated liquidity replication that takes a price, an inventory, and a range, and builds the replicated portfolio corresponding to that curve.
The text was updated successfully, but these errors were encountered: