Let’s talk about impermanent loss.
The more the price ratio between the two tokens deviates, the greater the impermanent loss. If the price ratio returns to its level when you added liquidity, this portion of the loss disappears.
To be honest, I only understood this next point later: trading pairs whose prices are very similar, such as two stablecoins, usually have very little impermanent loss.
By the way, a quick look: $UNI is quoted at 6.905 (24h -9.35%).
Be extra cautious with projects claiming to offer stable, high returns.
The more the price ratio between the two tokens deviates, the greater the impermanent loss. If the price ratio returns to its level when you added liquidity, this portion of the loss disappears.
To be honest, I only understood this next point later: trading pairs whose prices are very similar, such as two stablecoins, usually have very little impermanent loss.
By the way, a quick look: $UNI is quoted at 6.905 (24h -9.35%).
Be extra cautious with projects claiming to offer stable, high returns.