Fukasawa, Masaaki; Maire, Basile; Wunsch, Marcus - 2022
Impermanent Loss, the discrepancy between the payoff of liquidity provision versus buy and hold, is sometimes referred to as the ’silent killer’ in Decentralized Finance. We describe how Impermanent Loss can be hedged in a Constant Function Market, both statically as well as dynamically. If...