Risks

Oracle Risk

LPIPS needs to be adjusted for each pair. Too low and the oracle price would not be able to keep up with the market price. Too high and the oracle price would be vulnerable to manipulations.

Lack of liquidity/Trading volume of a pair could lead to an outdated price.

Smart Contract Risk

Smart Contract is unaudited.

Third-Party Protocol Risk

Unexpected behavior in third-party protocols could lead to undefined behavior.

Impermanent Loss

Despite additional arbitrage profits, Liquidity Providers are still exposed to impermanent loss identical to product invariant pools.

Slippage

Traders are still prone to slippage if the trading volume is large.