Impermanent Loss

AMM / DEX

Impermanent Loss is the temporary loss of money that happens when the prices of the tokens you provide in a liquidity pool change. If the prices diverge too much, it can lead to a lower value of your investment compared to just holding the tokens.

Definition
Impermanent Loss is the temporary loss of money that happens when the prices of the tokens you provide in a liquidity pool change. If the prices diverge too much, it can lead to a lower value of your investment compared to just holding the tokens.

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