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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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22780700 No.22780700 [Reply] [Original]

Let’s see the geniuses of this board answer this.

>> No.22780734

>>22780700
short because you join pools for stability

>> No.22780800

>>22780700
long because people are borrowing your coin to short

>> No.22780913

>>22780700
neutral because im a retard

>> No.22780938

>>22780700
short volatility

>> No.22780962

nigger volatility

>> No.22781053
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22781053

>>22780962
Based

>> No.22781079

>>22780700
results because i hold Chainlink (ticker: LINK)

>> No.22781101

obviously long vol.

higher volatility means plenty of transactions, which means plenty of fees for you as the price moves around, but more importantly it means more mean regression, which is something you want unless you're a fan of impermanent losses.

>> No.22781171
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22781171

>>22780700
short

>> No.22781188

>>22780700
You would be long eth and short usdt. As for volatility, I guess you would be long since you would get more fees.

>> No.22781355

>>22780700
>/biz/ IQ test
>post pic of a retard who failed FTX IQ test
OP is a faggot

>> No.22781388
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22781388

>>22780700
hehehe

>> No.22781419

have you faggots ever heard of Impermanent Loss?

>> No.22781544

>>22781419
yeah, any other risks twat?
Hackers getting into the contract?

>> No.22781772

>>22780800
>>22780913
>>22781101
>>22781188
Wrong. See other answers.

>> No.22781967

>>22781772
wrong

Volatility is the standard deviation of returns; i.e. noise along the mean return. Impermanent losses are generated by price movements due to the mean return, not by volatility around the mean return.

A liq provider wants as much volatility as possible (because it is a result of trading activity). They also want mean returns to be as close as possible to zero (to minimize impermanent loss).

>> No.22782051

>>22781967
this

>> No.22782061

>Dex
>slippage
>controlled by rug pulling corn maxis
Have fun with your bitconnect network

>> No.22782086

>>22781967
You’re confusing volume and volatility. Do you have any liquidity pool experience?

>> No.22782148

>>22781188
>You would be long eth and short usdt
It's the opposite actually.

>> No.22782218

>>22780700
All market makers are always short volatility

>> No.22782575

>>22780700
pretty sure they short volatility because most MM algos will lose money on very volitile movie

>> No.22782616

>>22782086
I said volatility is a result of trading activity. I never used the word volume. I'm not confusing volatility and volume.

I'm trying to figure out what you think is wrong about this sentence: >A liq provider wants as much volatility as possible (because it is a result of trading activity).


>Maybe you think volatility and trading activity are not correlated?
If that was the case, why do you think "neutral volatility" is an incorrect answer? (>>22781772) If they were completely independent, a liq provider would be neutral volatility and "long trading activity".

>Maybe you think volatility and trading activity are inveresly correlated?
They're not. >>https://www.jstor.org/stable/2962246

>> No.22782627

>>22780700
Delete..... people will find out why BAT is the perfect LP token on uniswap. REEEEEEEEEEEEE

Im doing this for 1year and giggling everytime someone trashtalks BAT, while I make 200% per year with the ROI.

>> No.22782663

>>22781079
Based