Someone asked: What is impermanent loss?
I usually answer like this: It’s also calculated using the x × y = k model. When the relative price increases fourfold, impermanent loss is about 20%. Whether providing liquidity is worthwhile depends on whether the fees and rewards you earn can offset the impermanent loss. If the fees don’t cover it, you’re better off simply holding.
$UNI 6.883（-11.15%）
What else would you like to learn about? Leave a comment below.
#UNI
I usually answer like this: It’s also calculated using the x × y = k model. When the relative price increases fourfold, impermanent loss is about 20%. Whether providing liquidity is worthwhile depends on whether the fees and rewards you earn can offset the impermanent loss. If the fees don’t cover it, you’re better off simply holding.
$UNI 6.883（-11.15%）
What else would you like to learn about? Leave a comment below.
#UNI