This thesis examines liquidity provision in decentralized exchanges within the decentralized finance ecosystem, overviewing challenges and opportunities tied to it. I present and define the problem of impermanent loss, explore the existing literature about it and propose a practicle dynamic hedging framework based on perpetual swaps, proposing also different strategies and evaluating the hedge modeling choices in a quantitative way.

This thesis examines liquidity provision in decentralized exchanges within the decentralized finance ecosystem, overviewing challenges and opportunities tied to it. I present and define the problem of impermanent loss, explore the existing literature about it and propose a practicle dynamic hedging framework based on perpetual swaps, proposing also different strategies and evaluating the hedge modeling choices in a quantitative way.

Impermanent Loss Hedging for Exotic Token Pairs

SCHIAVO, NICOLA
2024/2025

Abstract

This thesis examines liquidity provision in decentralized exchanges within the decentralized finance ecosystem, overviewing challenges and opportunities tied to it. I present and define the problem of impermanent loss, explore the existing literature about it and propose a practicle dynamic hedging framework based on perpetual swaps, proposing also different strategies and evaluating the hedge modeling choices in a quantitative way.
2024
Impermanent Loss Hedging for Exotic Token Pairs
This thesis examines liquidity provision in decentralized exchanges within the decentralized finance ecosystem, overviewing challenges and opportunities tied to it. I present and define the problem of impermanent loss, explore the existing literature about it and propose a practicle dynamic hedging framework based on perpetual swaps, proposing also different strategies and evaluating the hedge modeling choices in a quantitative way.
Liquidity Providing
DeFi
Impermanent Loss
Options
Perpetuals
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.12608/90390