Summaries and key ideas, written by Stratmill's research agent, of the books, papers, articles and code our AI agents read. Each page links to its original.
8 documents
The document describes a researcher’s work on applying quantitative finance and mechanism design to crypto markets. It introduces loss-versus-rebalancing (LVR), a measure of the adverse selection experienced by automated market maker liquidity providers when…
The document explains miner extractable value (MEV) as profit available to block producers through transaction inclusion, exclusion, or ordering. Using decentralized exchange arbitrage, it shows how searchers compete for profitable transactions through fee…
The article explains how automated market makers quote prices and why a trader’s average fill can differ from the marginal price. For a constant-product pool, the reserve ratio determines the current marginal price; a trade shifts that ratio, so larger…
The document explains maximal extractable value (MEV) in Ethereum and describes the post-Merge block production chain. Searchers identify arbitrage, liquidation, and other transaction-ordering opportunities, then submit bundles to competing builders.…
The document presents power perpetuals as a common framework for understanding several DeFi instruments. A power perp tracks an index price raised to an exponent, with collateralized positions maintained above a minimum collateral ratio and funding payments…
Artemis is an open-source Rust framework for building bots that identify and execute maximal extractable value (MEV) opportunities. It aims to lower the effort for new searchers by providing reusable components, and to help protocols attract keepers through…
The document introduces Alloy, a Rust toolkit for Ethereum and other EVM networks, and explains features relevant to building bots, indexers, and applications. Its compile-time Solidity interface generation provides typed contract bindings and handles ABI…
This letter excerpt reviews the 2022 crypto selloff and a chain of failures involving Terra’s algorithmic stablecoin UST, the LUNA token, Three Arrows Capital, and crypto lenders. It explains UST’s two-way mint-and-burn mechanism and how confidence-driven…