Galaxy: AMM pool of 500 tokenized stocks underperformed simple holding by 3%
- —Galaxy model: pool of 500 tokenized S&P 500 stocks trailed simple holding by 3% year-to-date
- —At a 5 bps swap fee, break-even needs about 45 annual turnovers
- —Return dispersion across assets explains up to 90% of impermanent loss in multi-asset pools
- —Using a single index token cuts the break-even turnover threshold by over 60%
Why it matters: The findings show AMMs fit tokenized equities poorly and set benchmarks for LPs and index-token issuers.
Source: TokenPost