This is a basic analysis to understand implication of providing liquidity on Uniswap for a portfolio. E.g. given two assets A and B, we want to see how a portfolio consisting of liquidity pair of A/B can be compared to a portfolio of holding A,B separately. To simplify things further we will select one of the assets (A) to be a dollar. This ensures that we can evaluate portfolios against a stable currency. This analysis ignores all transaction fees as well as fees earned for providing liquidity.

Uniswap is a decentralized exchange which is used to “swap” or trade ERC-20…

Ruslan Ovechkin

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