You put two coins into a pool to earn fees, so how did you end up with less than if you'd just held them?
First, the definition: it's called an “impermanent” loss because it disappears if prices return to where they started; the loss only becomes real when you withdraw your liquidity.
The principle: to determine whether providing liquidity is worthwhile, compare the fees earned against the impermanent loss. If the fees don't cover it, you're better off simply holding the assets.
Back to the market: $UNI is currently at 6.988, down 8.62% over 24 hours.
Be extra cautious with projects claiming to offer high returns.
#UNI
First, the definition: it's called an “impermanent” loss because it disappears if prices return to where they started; the loss only becomes real when you withdraw your liquidity.
The principle: to determine whether providing liquidity is worthwhile, compare the fees earned against the impermanent loss. If the fees don't cover it, you're better off simply holding the assets.
Back to the market: $UNI is currently at 6.988, down 8.62% over 24 hours.
Be extra cautious with projects claiming to offer high returns.
#UNI
