Answers are grounded in this paper and cite their sources.
Trade execution on Decentralized Exchanges (DEXes) is automatic and does not require individual buy and sell orders to be matched. Instead, liquidity aggregated in pools from individual liquidity providers enables trading between cryptocurrencies. The largest DEX measured by trading volume, Uniswap V3, promises a DEX design optimized for capital efficiency. However, Uniswap V3 requires far more decisions from liquidity providers than previous DEX designs.
No takes yet. Share an insight, caveat, or question.
Heimbach et al. (2022) studied this question.
Synapse has enriched 2 closely related papers on similar clinical questions. Consider them for comparative context: