🧮 Today’s key concept: impermanent loss
It’s also calculated using an x × y = k pool. When the price ratio changes by a factor of 4, impermanent loss is about 20%.
When you come across a pool with an absurdly high annualized yield, think about how much of it comes from token rewards and whether the token itself might keep falling.
Don’t place an order just because everyone else is doing it.
And take a look: $UNI is quoted at 6.853, down 11.84% over 24h.
It’s also calculated using an x × y = k pool. When the price ratio changes by a factor of 4, impermanent loss is about 20%.
When you come across a pool with an absurdly high annualized yield, think about how much of it comes from token rewards and whether the token itself might keep falling.
Don’t place an order just because everyone else is doing it.
And take a look: $UNI is quoted at 6.853, down 11.84% over 24h.