[igorkraw]

So basically, there is no interesting inherent property (no interesting math, no deeper dynamics), it just "solves" a problem DeFi created - and it only introduces a whole new layer of possible implementation errors and new types of risks like impermanent losses.

Backtesting is relevant because there was no stability analysis, no simulated long drawn out bearmarket, no adversarial probing. Just some minimal quant sugar to make the new gambling opportunity go down with the suckers.

In real finance, you have much more sophisticated and diversified trading algorithms babysitted and regulated for stability, with much higher effective decentralisation and control since different HFT funds are legally barred from conspiring against the traders. Oh, and much lower fees as well.