Incredibly overhyped
The premise is to essentially JIT their own LP rebalances (thereby saving on slip), however (once again), for JIT to be net profitable, fees accrued > LP position delta change + flashloan cost if applicable + batched txn gas cost…
popsiclefinance.medium.com
🧵
The premise is to essentially JIT their own LP rebalances (thereby saving on slip), however (once again), for JIT to be net profitable, fees accrued > LP position delta change + flashloan cost if applicable + batched txn gas cost…
popsiclefinance.medium.com
🧵
In the event that a respective “JIT rebalance” is realized to be net profitable amongst the MEV/JIT community - congrats, you’ve got competition (2-3% of fees atm)
If not, and they’re JITing for the sole purpose of net lower rebalancing costs at the expense of unprofitable JIT…
If not, and they’re JITing for the sole purpose of net lower rebalancing costs at the expense of unprofitable JIT…
… they may have saved on rebalancing slip costs, however they’re naturally taking a loss within this process, thus “any profits will go back to the protocol” will simply be a loss kek
ALSO, if you’re rebalancing your LP position to begin with (i.e fully in x or y), you are quite literally realizing the (im)permanent loss, obvs relative to gamma exp/tick range
Maybe scale back on the liq concentration a bit instead? (used to purport higher yields lel)
Maybe scale back on the liq concentration a bit instead? (used to purport higher yields lel)
Covered this earlier as well, check out this thread to learn abt the original “JIT” plan that made absolutely no sense
(Forgot to mention swap costs to “rebalance” og flashloan values after JIT)
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