Liquidity Provider Fundamentals: Formulas Summary (Part 10)
Manage eGHST-DAI liquidity on ghostDAO. Understand LP valuation, optimal contribution, price impact, constant product, impermanent loss, and DEX fees with key formulas.
Liquidity Provider Fundamentals: Uniswap’s DEX Fee Formula Finally Derived (Part 9)
The long-hidden formula behind Uniswap's $9 billion in fees is now publicly revealed! Understand how liquidity provider fees truly interact with Impermanent Loss and gain a crucial edge in your DeFi strategies.
Liquidity Provider Fundamentals: How DEX Fees Offset Impermanent Loss (Part 8)
We now arrive at a crucial concept: how DEX trading fees compensate for Impermanent Loss (IL). While most sources vaguely mention this relationship, few explain the exact mechanics. Let’s revisit…
Liquidity Provider Fundamentals: How DEX Fees Affect “k” (Part 6)
Learn how trading fees impact the constant product (k) in DEXs. Discover why k changes with swaps but not liquidity adjustments.
Liquidity Provider Fundamentals: Optimizing Token Allocation for LP Contributions (Part 3)
Learn how to optimize token allocation when joining a liquidity pool—exact formulas vs. quick approximations for efficient LP contributions in DeFi.
Liquidity Provider Fundamentals: LP Share Valuation (Part 2)
Learn how to calculate individual LP share value in DEXs with step-by-step formulas and real-world examples. Part 2 of our liquidity provider series.
Liquidity Provider Fundamentals: LP Valuation (Part 1)
Learn how to value liquidity provider (LP) positions in DEXs, including fee compounding, pool math, and real-world examples. Part 1 of a series.
GHOST Glossary
Let’s define all (or almost all) terms that will appear throughout the various formulas used to describe the GHOST Ecosystem. Tokens $latex \text{DAI} = \text{any decentralized stablecoin (e.g. on the…