Falkenstein already punched holes in the Yield Basis derivation — the 2x leverage linearization from √p to p only holds locally at the initial price, and once you include cash flows from continuous debt rebalancing, gamma doubles instead of vanishing. $30M BTC TVL at launch, $25M WETH in under a minute — capital desperately wants IL solved, but path-dependent costs (borrow rates, rebalancing slippage, debt adjustment timing) are just IL redistributed across different line items. Egorov's diagnosis is correct, √price scaling is structurally broken, but 2x leverage doesn't fix the structure — it moves where losses land on your P&L.

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