This analysis is for uniswap v2. I believe all pools use a 0.3% fee. The varying fee levels (0.05%, 0.3% etc.) are on Uniswap v3 - which is not based on x*y = constant (it instead uses liquidity price bands).
Many v2 pools receive further incentives. Not sustainable, but helps explain liquidity.
Still, you make a good point in quantifying IL and it’s expensive!
Thanks for this. A few points:
This analysis is for uniswap v2. I believe all pools use a 0.3% fee. The varying fee levels (0.05%, 0.3% etc.) are on Uniswap v3 - which is not based on x*y = constant (it instead uses liquidity price bands).
Many v2 pools receive further incentives. Not sustainable, but helps explain liquidity.
Still, you make a good point in quantifying IL and it’s expensive!