What is impermanent loss?
Using the same x × y = k model, when the relative price increases fourfold, impermanent loss is about 20%.
It’s called “temporary” loss because it disappears if the price returns to its original level; it only becomes a realized loss when you withdraw your liquidity.
The most important thing to keep in mind when managing your funds: trading pairs whose tokens move similarly, such as two stablecoins, usually have much smaller impermanent losses.
$UNI 7.03（-7.33%）
Using the same x × y = k model, when the relative price increases fourfold, impermanent loss is about 20%.
It’s called “temporary” loss because it disappears if the price returns to its original level; it only becomes a realized loss when you withdraw your liquidity.
The most important thing to keep in mind when managing your funds: trading pairs whose tokens move similarly, such as two stablecoins, usually have much smaller impermanent losses.
$UNI 7.03（-7.33%）