The LP Break-Even Frontier

Does an AMM LP out-earn the arbitrage bots picking off its stale quotes? Plot fee income (flat) against LVR = σ²/8 (rising with vol²): where they cross is break-even. At low turnover even BTC sits in the red. Flip on solver-auction recapture and the frontier slides right.

chart SVG DeFi Infrastructure Jun 19, 2026

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The LP Break-Even Frontier — tap an asset marker · ← → to cycle assets · fee-tier + turnover + recapture inputs · data as of Jun 19, 2026 · Crypto.com Exchange — 30-day realized vol; Uniswap v3 fee via Blockscout ↗ open artifact ↗

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DeFi Agents Infrastructure

Picking Off the Pool: The Arbitrage Tax on AMM Liquidity Providers

Passive AMM liquidity is a short option that arbitrage bots exercise every block. LVR = σ²/8 prices the rent — at ETH's 63% realized vol that's ~5% of pool value a year, and most pools don't earn enough fees to cover it. The math, real numbers, and the auctions clawing it back.

Jun 19, 2026 7 min read ⬢ interactive