What is impermanent loss? Don’t panic—your class study rep is here to explain:
Using a constant-product pool as an example, when one token doubles in price relative to another, impermanent loss is about 5.7%.
When token prices change, arbitrage traders take the token that has gone up out of the pool and put in the one that has gone down. As a result, your share contains less of the token that went up.
Knowledge won’t make me rich overnight, but it can help me avoid paying quite so much in tuition.
$UNI 7.295 (-0.33%)
Personal notes only. Make your own decisions about what to do.
Using a constant-product pool as an example, when one token doubles in price relative to another, impermanent loss is about 5.7%.
When token prices change, arbitrage traders take the token that has gone up out of the pool and put in the one that has gone down. As a result, your share contains less of the token that went up.
Knowledge won’t make me rich overnight, but it can help me avoid paying quite so much in tuition.
$UNI 7.295 (-0.33%)
Personal notes only. Make your own decisions about what to do.
