There was a recent tweet in the crypto-Twitter sphere (can’t seem to find now) which discussed constant-mix – a well known, albeit simplistic, dynamic portfolio management technique – in the context of Uniswap and impermanent loss. What surprised me about that thread is that people seemed unaware of constant-mix. The matter of the fact is that constant-mix has been known and used since 1985, potentially much earlier. Yep, you read that right! There’s awesome journals from Perold et. al on this topic since back then. In fact, part of this post will be from those papers.
: https://sekniqi.com/functionalization-theory/ “Functionalization Theory” –>