About
Independent research on DeFi mechanism design, concentrated liquidity and on-chain portfolio construction.
Research
The Geometric Siphon
Phase 1: Mechanism discovery and empirical validation · March 2026
A previously unidentified mechanism in concentrated liquidity portfolio management. When multiple CL positions share a depositor-level dust balance and are autonomously rebalanced, the geometric mismatch between consecutive tick ranges produces capital transfers between independent positions without oracles, governance or additional gas cost.
738 events · 22 positions · 5 groups · 41.9 hours on Aerodrome (Base)
Key findings:
- Capital flow is driven by range geometry, not swap friction (ρ = 0.976, 0.35% median price impact)
- A Simpson’s paradox hides which predictors actually matter. Aggregate analysis gives the wrong answer
- Acts as automatic IL mitigation during market stress with no parameters
- Token graph topology determines where capital can and cannot flow
- On ve(3,3) protocols, emission governance appears to steer siphon role assignment