---
title: Decentralized Market Liquidity Provision
url: https://www.ml-quant.com/papers/ssrn/4577268/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4577268
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4577268
featured: 2023-09-21
citations: unknown
topic: Trading, Microstructure & Execution
---


# Decentralized Market Liquidity Provision

The study examines how liquidity providers in decentralized exchanges decide to add liquidity, finding that it often occurs when price volatility or return is within a certain range, as evidenced by Uniswap token pools data.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4577268
- Identifier: SSRN 4577268
- Released: 2023-09-20
- First featured: Quant Letter No. 16 (2023-09-21): https://www.ml-quant.com/issues/2023-09-21/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution

## Related

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- [Don't Let MEV Slip: The Costs of Swapping on the Uniswap Protocol](https://www.ml-quant.com/papers/arxiv/2309.13648/): Efficiency and Slippage Analysis: The research analyzes the costs of trading on a decentralized exchange, showing that costs vary based on trade characteristics, and proposes that DEXs could be a trustworthy alternative to centralized exchanges for trading digital assets.
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