Why doesn’t the high annualized return shown on LP match what you actually earn?
Using the same x × y = k model, when the relative price increases fourfold, impermanent loss is about 20%.
For trading pairs where the token prices are very close, such as two stablecoins, impermanent loss is usually much smaller.
For market context: $UNI is at 6.948 (24h -8.97%).
What topic would you like to learn about? Let me know in the comments.
Volatility is high, so manage your leverage carefully.
Using the same x × y = k model, when the relative price increases fourfold, impermanent loss is about 20%.
For trading pairs where the token prices are very close, such as two stablecoins, impermanent loss is usually much smaller.
For market context: $UNI is at 6.948 (24h -8.97%).
What topic would you like to learn about? Let me know in the comments.
Volatility is high, so manage your leverage carefully.