AMM-bivalent: how not to deploy tokenized stocks in DeFi i’m bullish on tokenized stocks, but Galaxy’s latest AMM research raised my bar for where i’d provide liquidity they modeled an AMM holding the S&P 500’s individual constituents: → ~3% underperformance versus holding, year-to-date → ~45x annual turnover needed to break even at a 0.05% swap fee → SPY turns over roughly 16x annually these are modeled results for a constant-weight AMM still, that’s a demanding fee target then i care about how how differently the stocks perform? as prices diverge, the pool sells relative winners and accumulates relative losers dispersion accounted for ~90% or more of impermanent loss in much of the analysis a rising index doesn’t prevent this neither does a falling market where stocks decline by different amounts i care about this because my equity thesis and my liquidity strategy need separate underwriting i can be right about stocks rising and still earn less by providing liquidity than by holding market needs to use tokenized index products for broad exposure consider lending or holding individual stocks, and favor structurally linked assets for passive pools from here, i’m comparing 4 approaches: → @Uniswap v4: assess whether custom execution and dynamic fees improve LP returns → @CurveFinance: assess which equity pairs have a durable reason to stay close → @Morpho: compare lending returns, demand, and liquidation risk → @1inch aqua: assess capital efficiency when one wallet balance supports multiple swap strategies aqua interests me because shared liquidity changes how capital is allocated but i’d still need evidence that the underlying strategies compensate LPs for adverse selection & impermanent loss no need doing DD here, you better ape one of these for the bullrun