You deposit two coins in a pool to earn fees. Why might you end up earning less than if you’d just held them?
In pools where the two assets move together, such as swaps between stablecoins, impermanent loss is often much smaller.
Put simply, it’s called “impermanent” loss because it disappears if prices return to their original levels. But when you withdraw your liquidity, the loss becomes real.
$UNI is currently at 7.312.
#UNI
Just chatting. Whether you make or lose money, you’re responsible for it yourself.
In pools where the two assets move together, such as swaps between stablecoins, impermanent loss is often much smaller.
Put simply, it’s called “impermanent” loss because it disappears if prices return to their original levels. But when you withdraw your liquidity, the loss becomes real.
$UNI is currently at 7.312.
#UNI
Just chatting. Whether you make or lose money, you’re responsible for it yourself.