Understanding Impermanent Loss: Risks and Rewards in DeFi
Impermanent loss happens when the prices of assets in a liquidity pool change relative to each other, causing a temporary dip in value compared to simply holding the assets.
What Is Impermanent Loss? How It Works, and How to Avoid It - Changelly
Impermanent loss happens when the value of your tokens drops after you add them to a liquidity pool, compared to simply holding them. It’s caused by a change in the price ratio between the two assets you deposit.
Impermanent Loss Explained - Binance
Impermanent loss happens when you provide liquidity to a pool, and the price ratio between the assets you deposited changes compared to when you deposited them. The bigger this change, the more exposed you are to impermanent loss.
What is impermanent loss? - Coinbase
Impermanent loss is a risk that occurs when participating in DeFi liquidity pools, where the value of your allocated assets changes from the time you allocated them. This loss is termed 'impermanent' because it can be mitigated if the token price returns to its original value.
What Is Impermanent Loss and How Does It Affect Liquidity Providers
Learn what impermanent loss is in crypto, how it works, why liquidity providers experience it, real examples, and how LPs can reduce or manage impermanent loss in DeFi.
What Is Impermanent Loss? | Solflare
Learn what impermanent loss is, how it affects liquidity providers, and how to reduce risk when earning yield in DeFi and liquidity pools.
Impermanent Loss: What It Is and How LPs Manage It - ecos.am
In this article, we will take a detailed look at what impermanent loss is, how it occurs, why it can become permanent, how impermanent loss works in liquidity pools, and which strategies help liquidity providers manage this risk rather than ignore it.
Impermanent Loss: Why Liquidity Providers Need to Understand It
Learn what impermanent loss is, how it affects liquidity providers, and why understanding this risk is critical when earning yields in DeFi liquidity pools.