This is something really hard to comprehend.
04 Feb 2023, 10:42
This is something really hard to comprehend. In reality, this "toxicity" is attributed to large price movements which the few wallets are first to arb with CEX-DEX arbitrage. And to liquidity distribution not being able to handle it
AMM toxicity is almost entirely attributable to a tiny fraction of high frequency algo wallets:
"[O]utside of this subset of 364 wallets — i.e, the other 454,091 wallets in the dataset — are in fact immensely profitable for Uniswap LPs to the tune of positive 104 million USD"