impermanent loss

What is Impermanent Loss?
Impermanent Loss: A Simple Graphic

What is Impermanent Loss?

Impermanent loss refers to the event when a liquidity pool investor’s asset value changes between the time of deposit and the time of withdrawal.

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What is a Liquidity Pool?
Liquidity Pool Cover Diagram

What is a Liquidity Pool?

Liquidity pools are a collection of tokenized assets locked in a smart contract through which DeFi traders and investors can buy and sell those specific assets.

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2560 1707 Yield Monitor