FiRe research seminar (May 18, 2026)

The coordinates for the seminar are:

Speaker:  Olga Klein (Warwick Business School (UK))
Title: Blockchain scaling and liquidity concentration on decentralized exchanges  
Time: 16:00-17:30
Venue: SR15.25/Universitätsstraße 15 and online: (Zoom Link:  https://uni-graz.zoom.us/j/62568612547?pwd=IpthkYVbDdbpjmavUasY4xQE7ybZij.1)
Abstract: Using the launch of Uniswap v3 on blockchain scaling solutions, we examine how the trade-off between security and transaction costs affects liquidity fragmentation on decentralized exchanges. We observe a separating equilibrium, in which large traders and liquidity providers (LPs) choose Ethereum due to its higher security, whereas small traders and LPs gravitate towards blockchain scaling solutions due to lower gas fees. Importantly, lower gas fees on scaling solutions enable LPs to update their positions more frequently. Our results demonstrate that higher updating frequency of LPs leads to higher liquidity concentration, which further benefits small trades by reducing their slippage.
Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4475460