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by pcthrowaway
1648 days ago
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I think low-liquidity rather than low volume would be the issue, and TWAP helps smooth that out somewhat (a price spike due to a large trade wouldn't immediately change the TWAP, and arbitragers would then bring price back to parity with other pools). It would be ill-advised to use low-liquidity tokens for the credit rating however, I'm not sure how this is addressed by the beanstalk protocol because I didn't do a thorough reading yet. But if you're establishing something similar to a credit score based on an account's crypto assets, it would be unusual to factor in their holdings of tokens which might have very low liquidity, things like NFTs, etc. |
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