Deployed Contracts
| Chain |
Name |
Address |
| Base |
AkronWeightedLVRFeeHook |
0xA45570815dbE7BF7010c41f1f74479bE322D02bd |
| Arbitrum |
AkronWeightedLVRFeeHook |
0xD221aFFABdD3C1281ea14C5781DEc6B0fCA8937E |
<aside>
💡
Pools with Akron Hook are created from the Balancer’s standard WeightedPoolFactory.
</aside>
Integration Guide for Aggregators and Solvers
Assuming aggregators and solvers have already integrated standard Balancer v3 Weighted Pools from the standard WeightedPoolFactory, the only change to the standard Weighted Pool is the change from standard static fees to Akron dynamic fees.
- In order to get the dynamic swap fee, multiply
dynamicSwapFee (the returned value from calling onComputeDynamicSwapFee) to the input amount (adjusting for scaling factor of 1e18).
For example, if the dynamicSwapFee is 0.0001e18 (ie. 0.01%) and input amount is 100e6, then multiply 0.0001e18 (adjusting for scaling factor of 1e18) to 100e6 to get 0.01e6, the dynamic swap fee amount.
- On Balancer v3, swap fee are subtracted from the input amount for exact output and added to the input amount for exact input.
<Typescript>
https://github.com/Akron-admin/balancer-maths/blob/akron/typescript/src/hooks/akronWeightedLVRFeeHook.ts
https://github.com/Akron-admin/balancer-maths/blob/akron/typescript/src/weighted/AkronWeightedMath.ts
<Solidity>
https://github.com/Akron-admin/balancer-v3-monorepo/blob/Weighted-Hook/pkg/pool-hooks/contracts/AkronWeightedLVRFeeHook.sol
https://github.com/Akron-admin/balancer-v3-monorepo/blob/Weighted-Hook/pkg/pool-hooks/contracts/utils/AkronWeightedMath.sol
Problem statement
- Loss Versus Rebalancing (LVR) is a form of maximal extractable value (MEV) that has a greater impact on liquidity providers than all other forms of MEV combined. LVR can cost LPs 5–7% of their liquidity annually, accounting for hundreds of millions of dollars in opportunity costs each year.
- LVR is only significant for volatile pairs such as WETH/USDC. If the price of the pair does not move for a year, such as that of USDT/USDC, then LVR would be ~0.