For example, let’s say an LP deposits liquidity into an ETH-BTC pool at a time when 1 BTC equals 10 ETH. A month later, the value of ETH doubled while BTC hasn’t changed. When this disparity occurs, arbitrage traders will jump at the opportunity to buy ETH from that pool and sell it on a DEX at a higher price thereby bringing the pool ratio and token prices back to market rate. This could hurt a depositor or benefit them, depending on which side of the trade they’re on.
Ethereum’s Staking Weekly Web Inflows Elevated Sharply, What’s Behind The Surge?
Curiosity in Ethereum, the second-largest cryptocurrency asset, is gaining momentum as soon as once more amongst retail and institutional buyers, as...
