Uniswap V4 hook: LVR-minimization with Per-block conversion vs. Futures contracts
We conducted various simulations based on the research “LVR-minimization in Uniswap V4 2” and the paper 1 which utilizes Diamond Protocol to address LVR, and found that implementing LVR minimization through “Per-block conversion vs. Futures contract” rather than “Low Impact Re-add”, the solution presented in the paper, is more profitable in terms of profitability and slippage. In this research, we will describe the “Per-block conversion vs. Futures contracts” solution, share and analyze the simulation results, discuss what needs to be considered further, and finally describe the pseudo code for this solution.
