Have You Considered IMPERMANENT LOSS When Providing Liquidity?

Providing liquidity in a liquidity pool can be very profitable in DeFi lands

But you have to considered the big name:
Impermanent loss

This is hugely helpful for your peruse…Enjoy!


This is one important thing that many new liquidity providers do not realise and instead of making money from the trades, you lose because of the price fluctuation.


The most annoying aspect of it is you don’t get to see the extent of profit or loss made except you e pulled your funds from the pool. I just learnt about it yesterday thanks to you @Mike2microbe and have also learnt alot from you too @vipul19. Gràçíàs.


That’s why it is called “impermant”, which is somewhat misleading :smile:
The loss is actually permanent the moment you take out your liquidity.

The little bright side of it is compensation from transaction fees.


I learnt about it some weeks ago too that you can’t know until you withdraw the funds. So annoying. The reason I didn’t participate in LP

1 Like