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The collapse of cryptocurrency exchange FTX that saw at least $1 billion of customers’ money lost has brought the benefits of decentralised exchanges (DEX) sharply into the spotlight.

To find out more about Olga Klein's view point please read further.

Join us at the Shard in examining the research that has underpinned Large Language Models (LLMs) and their likely use and impact on the world of Finance and investment management. Explore the advancements in natural language processing (NLP) that has led to the development of LLMs and gain valuable insights into the potential and limitations of these powerful language models. Engage with leading AI researchers and industry experts as they discuss the implications of LLMs on NLP, share real-world applications and use cases, and examine the challenges and opportunities in integrating LLMs into investment management processes. Don't miss this opportunity to stay ahead of the curve and understand how LLMs are reshaping the future of finance.

Olga presented her paper ' Blockchain Scaling and Liquidity Concentration on Decentralized Exchanges' at both the AFFECT Workshop, AFA Annual Meetings, New Orleans, January 2023 and Economics of Financial Technology Conference, Edinburgh, June 21-23, 2023.

The abstract for her paper is:

Liquidity providers (LPs) on decentralized exchanges (DEXs) can protect themselves from adverse selection risk by updating their positions more frequently. However, repositioning is costly, because LPs have to pay gas fees for each update. We analyze the causal relation between repositioning and liquidity concentration around the market price, using the entry of a blockchain scaling solution, Polygon, as our instrument. Polygon's higher throughput and lower gas fees allow LPs to update more frequently than on Ethereum. Our results demonstrate that higher repositioning intensity and precision lead to greater liquidity concentration, which benefits small trades by reducing their slippage.