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!
:trust:

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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.

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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.

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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.

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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

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