š DeFiļ½Impermanent Loss
Ā· Key point: Itās called āimpermanentā because the loss disappears if prices return to their original levels; when you withdraw your liquidity, it becomes a realized loss.
Ā· Why it matters: To decide whether providing liquidity is worthwhile, compare the fees earned against the impermanent loss. If the fees donāt cover it, youāre better off simply holding the tokens.
Ā· In practice: Trading pairs with two similarly priced tokens, such as stablecoin pairs, often have much lower impermanent loss.
$UNI 7.184ļ¼-0.042%ļ¼
Ā· Key point: Itās called āimpermanentā because the loss disappears if prices return to their original levels; when you withdraw your liquidity, it becomes a realized loss.
Ā· Why it matters: To decide whether providing liquidity is worthwhile, compare the fees earned against the impermanent loss. If the fees donāt cover it, youāre better off simply holding the tokens.
Ā· In practice: Trading pairs with two similarly priced tokens, such as stablecoin pairs, often have much lower impermanent loss.
$UNI 7.184ļ¼-0.042%ļ¼