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. Impermanent loss refers to a situation where the compensation you receive from allocating a token in a liquidity pool is less than what you would have received just holding the asset.
Revolutionizing DeFi: Understanding Automated Market Makers
Automated Market Makers (AMMs) are changing how cryptocurrency trading works. These smart contract systems let anyone with a crypto wallet...
