An Economic Model of a Decentralized Exchange with Concentrated Liquidity
构建了集中流动性去中心化交易所（如Uniswap v3和v4）的经济模型，重点分析流动性供给的经济学，发现提供流动性类似于出售内在价值而非市场价值的看涨期权，均衡流动性供给随期权时间溢价递减。
We develop an economic model of a decentralized exchange with concentrated liquidity (e.g., Uniswap v3 and v4), with a particular focus on the economics of liquidity provision. We demonstrate that providing liquidity for a risky/risk-free asset pool is comparable to investing in a covered call, except that the call option therein is sold at intrinsic rather than market value. Hence, when providing liquidity, liquidity providers forgo the time premium of the call option in exchange for fees, and thus equilibrium liquidity provision decreases in the time premium. Finally, we provide an expression for equilibrium liquidity provision that is useful for empirical work. This paper has been This paper was accepted by Lin William Cong for the Special Issue on Digital Finance.