Cryptoeconomics Dive: LP Volatility Harvesting Across Yield Rates
Duration: 00:22:34
Speaker: Will Villanueva
Type: Talk
Expertise: Intermediate
Event: Devcon
Date: Oct 2022
This talk furthers the concept of volatility harvesting. Currently, Uniswap and other major dexes see a huge part of their trading volume consist of the result of volatility in the market. Value changes and as a result, trading volume spikes and LPs profit.
When extending yield, which is also quite a volatile concept, to AMMs, volatility harvesting is increased further to not only affect value but also the yield that value creates.