The Life-Changing Magic of Concentrated Liquidity
Statistical Arbitrage — Part I: Understanding Uniswap V3
The Statistical Arbitrage Series is a collaboration between
and to present stat arb strategies and their application on a blockchain environment.Many entries in the series will be written by a single author, however the series will be available in full on both publications.
About Vertox
Vertox is a quantitative researcher from Germany who started learning about quantitative finance at the age of 14 and hasn’t stopped since.
His publication VertoxQuant covers all things quantitative finance. From simple momentum trading all the way to complex strategies involving stochastic calculus and market making.
About BowTiedDevil
BowTiedDevil is a lifelong techie who discovered the magic of computers by playing MS-DOS games on the family PC (a 286-DX). He learned how to write simple programs in BASIC, then C. He discovered the world of open source software from a Mandrake Linux CD included in a magazine.
His Ethereum bot-building experiments in 2021 were fruitful, so he began writing regularly at Degen Code where he focuses on the development of Ethereum trading bots using Python.
Foundations
This post is primarily authored by BowTiedDevil. It focuses on introducing Vertox’s readers to the core concepts of Uniswap V3 liquidity pools. The techniques needed to interact with a blockchain network are deferred until the construction of the bot is in focus.
Degen Code readers have largely seen this content before, but may appreciate the high level summary of these low level concepts.