Picking-off Protection

A big problem in the current design of concentrated liquidity AMMs is that LPs get "picked off" by traders, i.e., when price moves, stale liquidity from LPs got swapped by traders at a worse price than the final market price. This incurs huge losses to LPs.

Tidal AMM provides embedded picking-off protection to LPs. LPs can elect to only allow partial fill of their orders, and let the rest be re-placed at a better price. For example, if an LP places 100 GLP at 1 symGLP = 0.99 GLP, and chooses 20% picking-off protection, then once 20 GLP of his got swapped by traders, the rest 80 GLP will be automatically re-placed at 1 symGLP = 0.9875 GLP.

$$\overline{P}=\frac{9+\frac{S*(10P-9)-F}{S-F}}{10}$$

$\overline{P}:re-placed\,order\,price$

$F: Filled\,amount$