(what is impermanent loss in crypto?)
Have you heard of Impermanent Loss? Impermanent Loss is a concept that applies to liquidity provision in decentralized exchanges ,automated market makers and in DeFi space. When you add funds to a liquidity pool, you receive liquidity pool tokens in exchange, which represent your share of the pool. If the value of the tokens in the pool changes, your share of the pool may also change. Impermanent Loss occurs when the value of the tokens you have provided to the pool changes relative to the value of the tokens you would have held if you hadn't added liquidity. if the value of the tokens you provided to the pool drops relative to the value of the tokens you would have held, then you experience an Impermanent Loss. Impermanent Loss is a risk that occurs when you provide liquidity to a decentralized exchange. Essentially, as the price of the tokens in the liquidity pool fluctuates, your holdings can become imbalanced. But to learn more, you'll have to check out the full video on our channel. #impermanentloss #defi #liquiditypool #blockchain #cryptocurrency #business #ethereum #mining #curve #bitcoin #technology #finances #binance
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