Knowledge Notes | Impermanent Loss
① It is also calculated using a constant-product pool: when the relative price changes by a factor of 4, impermanent loss is about 20%.
② It is called “impermanent” loss because it disappears if the price returns to its original level; the loss only becomes real when you withdraw your liquidity.
③ Pools with two correlated tokens, such as a pair of stablecoins, usually have much smaller impermanent losses.
$UNI 7.181（-7.44%）
#UNI
① It is also calculated using a constant-product pool: when the relative price changes by a factor of 4, impermanent loss is about 20%.
② It is called “impermanent” loss because it disappears if the price returns to its original level; the loss only becomes real when you withdraw your liquidity.
③ Pools with two correlated tokens, such as a pair of stablecoins, usually have much smaller impermanent losses.
$UNI 7.181（-7.44%）
#UNI