BWG Loonshots

Rent accrues over a month. During that month, the rights to the asset move from C to A, and part of the position moves again to B. When the income is paid, who should receive how much?

One method establishes entitled holders at a single point. Another considers the interests held throughout the period in which income accrues. The right choice depends on the product's terms. Making the asset tradable in smaller tokens does not answer this question by itself.

In 2023, we explored the second approach.

If we record the balance and time whenever a token moves, can we calculate rights from who held how much, and for how long?

In 2022, a DeFi swap could finish in seconds. Its economic effects did not.

A user makes a large swap through an automated market maker (AMM), a trading pool whose reserves determine its price. The reserve ratio moves, opening a price gap against another decentralized exchange (DEX). A searcher, a participant looking for profitable trading opportunities, follows the swap and earns a profit by narrowing that gap. This kind of following trade is called a backrun.

The user bears price impact and gas costs, while someone else receives the arbitrage left behind. At the end of 2022, we began with this question:

Could the arbitrage run inside the user's transaction and return what remains after costs to the user?