Impermanent Loss
AMM / DEXImpermanent 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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