The problem of aggregation, where rational actions at the individual level lead to an irrational outcome at the collective level is prevalent in macroeconomics and financial markets.
On-Chain Markets Update by IntoTheBlock Uniswap v3’s concentrated liquidity improved capital efficiency, but also amplified the risks of impermanent loss. Here is the breakdown of the profitability of liquidity providers and how it could potentially be improved. Recently an interesting paper was published by the Bancor team related to impermanent loss when providing liquidity on…