I read it, guess i'm to dumb to understand how LP's work best, thought having a large pool with USDC would be good and let volatility come from HIVE side, don't get how the LSTR and SURGE pool would work against each other
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A lot of this is theoretical and can only truly be see live and in action with the market forces
I think the theory here is to A/B test the LSTR & SURGE pools
See which one brings more arb profits for the fund
Also, by having LSTR paired with something different on base, it introduces more volatility for LEO & SURGE since SURGE & LSTR are paired with LEO on HE
So imagine a $100 trade buys LSTR:ETH -> sold in LSTR:LEO
Now LEO is hit with $100 sell pressure on HE
Now SURGE and LEO go down from this $100 trade in USD terms
Now the bot needs to trade the other direction (buy LEO & SURGE on HE and trade it on Base for USDC)
A simple example but illustrates the direction