Everyone,. A quick recap and update of how v2 Balancer 80/20 (RDNT/ETH) out-performs the Sushi 50/50 (RDNT/WETH):.
11 Feb 2023, 04:13
📣 Everyone,
A quick recap and update of how v2 Balancer 80/20 (RDNT/ETH) out-performs the Sushi 50/50 (RDNT/WETH):
- A lower ask for ETH (20%) and the 80% exposure to RDNT is close to the single-sided lock RDNT exposure.
- Option to auto-relock dLP
- Option to auto-compound fees into dLP
- Impermanent Loss (IL): The Balancer 80/20 pool has higher slippage but would be mitigated by deeper liquidity. According to Balancer’s medium article on this liquidity bootstrapping pool (LBP) product’s performance, in the case of a 3x in a price change (value of the pool relative to just holding the asset pair), the IL for a standard 50/50 pool is 13% whereas, in an 80/20 pool, it would be 7%, a 46% reduction.
medium.com/balancer-protocol/80-20-balancer-pools-ad7fed816c8d