avatar
Swapzone
@swapzone
05.08.2026 14:43
Swapzone Glossary: Impermanent Loss

Providing liquidity can earn you rewards, but it's important to understand the risks.

One of them is impermanent loss.

Impermanent loss is the difference between the value of your assets in a liquidity pool and what they would have been worth if you had simply held them in your wallet.

Why does it matter?

1. It primarily affects liquidity providers in DeFi
2. Larger price changes between pooled assets can lead to greater impermanent loss
3. Trading fees and liquidity rewards may help offset some, or even all, of the loss

Understanding impermanent loss can help you decide whether providing liquidity is the right strategy for you.

What crypto term should we explain next?

🔗 Official Links | Website | X (ex-Twitter) | Chat | Bot | Mini-App
43

Обсуждение 0

Обсуждение не доступно в веб-версии. Чтобы написать комментарий, перейдите в приложение Telegram.

Обсудить в Telegram

Swapzone

391
Swapzone discovers, aggregates and pinpoints the most relevant exchange deals on the crypto market. — swapzone.io

Our community chat to discuss all things crypto: t.me/swapzoneio
Открыть в Telegram