Uniswap V3, Financial Engineering, Stochastic Process, Pricing, Martingales.
strategy requires us to hold until τ, Pt​ can only take on two values: L and H. We can calculate the value of our LP as: In our example, we have: The expected value of LP is calculated as follows: 0.5∗LP(H)+0.5∗LP(L)=0.9334553114807631 This means that LP is expected to incur a loss of 7%. Can the