What Are the Ethical Implications of LPs Using JIT Liquidity Extraction Methods? ▴ Learn

What Are the Ethical Implications of LPs Using JIT Liquidity Extraction Methods?

The ethical implications are significant because JIT Liquidity, while technically exploiting a protocol mechanism, is a form of predatory value extraction. It siphons fees and value from regular users' trades without contributing to long-term pool stability.

While some argue it is a legitimate part of the MEV competition, others view it as an unfair, zero-sum game that discourages participation by regular traders, ultimately harming the decentralized and open ethos of DeFi.

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Does the Open Interest of an Option Contract Directly Impact Its Implied Volatility?

What Is a “Just-in-Time” (JIT) Liquidity Attack and How Does It Exploit Slippage?

Can MEV Extraction Be Considered a Form of Legitimate Arbitrage in Some Contexts?