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18767888 No.18767888 [Reply] [Original] [archived.moe]


Someone explain to a brainlet how you can run a liquidity pool AMM with single token exposure. Doesn't the AMM pool by definition need at least 2 tokens to allow for exchange without order matching?

Related: is single token exposure the means by which impermanent loss is eliminated? What the fuck is a "pegged liquidity pool",what do the assets in a pegged liquidity pool look like? What are they pegged to, is only one of them pegged? Basically what exactly is meant by
>This type of AMM holds the relative value of its reserves constant using prices from Chainlink’s secure and reliable oracles.
Does the AMM mint a synth stablecoin (via oracle data) against which the counter token can be traded? Please help.

>> No.18768161
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>Bancor V2 eliminates the risk of impermanent loss for any ERC20 token, including volatile tokens, so long as the token doesn’t fail. Bancor V2 does this by enabling the creation of AMMs with pegged liquidity reserves. This type of AMM holds the relative value of its reserves constant using prices from Chainlink’s secure and reliable oracles.
My understanding of impermanent loss is that since normally liquidity providers have to split their liquidity into 2 tokens for a given AMM pool, they sacrifice their 100% long position into 50/50 long/short in exchange for collecting trading fees, and if the price of the long asset moves too much in either direction then the fees generated by providing liquidity are exceeded by the gains made by a 100% long or 100% short strategy, as seen here


From my understanding, the only way to eliminate this so called impermanent loss is to prevent liquidity providers from ever taking a short position at all when they provide assets to the pool. What's more, BancorV2 claims to be allowing for liquidity provision to a given pool of up to 100% of single token
>Liquidity providers no longer need to hold a separate reserve token. They can select their exposure to any token in the AMM, from 0–100%.

>> No.18768310
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>> No.18768977
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Damn guess I should have posted a tranny in the OP.

>> No.18769568
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Fuck you tranny posting, thread sliding, dick sucking faggots.

>> No.18770266
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Automated market makers are cool

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