DeFi Scientist

Innovative Quant Research on Crypto and DeFi. Unique blend of research, modelling, and machine learning to provide institutional-grade insights.

How to Estimate Impermanent Loss for LPs (Part 2 of 4)

How to Estimate Impermanent Loss for LPs (Part 2 of 4)

In this post, we present a simple framework for a conservative assessment of IL. We then apply it to current market data and show that IL is very limited for nUSDC and nDAI.

DeFi Scientist
Deep Dive
How to Add 4% to Your Compound Recursive Lending Return

How to Add 4% to Your Compound Recursive Lending Return

Recursive lending is a very popular strategy in DeFi. It involves lending and borrowing on Compound / AAVE in order to harvest the maximum reward possible. This strategy was very profitable at the beginning of 2021. However, returns have dropped considerably as more money flew into the strategy and the value

DeFi Scientist
Deep Dive