If I want to buy large position, should I buy small amount many times or just 1 time with all the amount I want

In normal exchange, if I want large position, I would separate my order to 10 orders or more, not to make slippage too high.

In AMM dex, I don’t know that should I do the same as normal exchange or because it’s use x*y=k to calculate to price, so it doesn’t matter how I do, the result will be same or really close.

Isn’t it possible to mint it at Mirror Finance directly? Like stETH at Lido Finance.

You would want to separate buys, but over time…

So buying/selling strategy is the same as normal exchange.

The optimal strategy is path-dependent. In a universe where liquidity is infinite, you cannot do better than the strategy of executing the whole order in one go for constant product AMMs (fun algebra problem to prove this).

Of course the infinite liquidity assumption is not true, so you would need to look at the current liquidity levels.


Thank for the replied. Could you explain more about “path-dependent”? I have never heard this strategy before.

It means breaking up a trade into multiple is always more or equally expensive as doing the trade in one go (under infinite liquidity assumptions).

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Im not sure that applies in real life to a bleeding edge asset class. :slight_smile:

My advice would be to buy dips over the course of a week during market hours , take advantage of limit orders , dont buy on the weekends.

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