# Balancer Research Group
Dynamic AMMs/Dynamic Weights Changing

# Research Topic

Dynamic Weigths Changing with a goal to decrease Impermanent Loss (IL) and maximize LP Value (open-loop, closed loop systems)

# Research Information
It is important in order to define the decrease in Impermanent Loss impact, to understand how to measure this effect.
Impermanent Loss is an effect of the result of the divergence in price of the assets in a Pool. That divergence causes that the Pool will increase the exposure in the asset that is performing worst in order to offer market counterparty.
In a straight forward movement that implies that we lose exposure to the best asset, and we have to figure out how we can reduce this effect. In order to have the behaves like a traditional fund where assets performing well adds more share of the portfolio.

# Proposed Approach

We will need to define a function that will calculate Impermanent Loss in order to try to run several optimizations with different strategies in order to minize this value.

This function have to be to mantain the assets allocation that will emerge from the original prices of the assets.

Link to excel to work on examples of Impermanent Loss https://docs.google.com/spreadsheets/d/1WYb_uzTvST1a5s9VNPEp0PvpC5JIpU5UCuWQM6lUZ5Q/edit?usp=sharing

# Next Steps

Get data from the history and code some strategies that with can optimice in terms of the parameters that use.

# Discussion

## Links
https://pintail.medium.com/uniswap-a-good-deal-for-liquidity-providers-104c0b6816f2