Impermanent loss is an important concept for anyone active in decentralized finance (DeFi), especially those who provide liquidity. This is a phenomenon that occurs when asset prices in a liquidity pool diverge. As a result, you might be incurring a negative return versus simply holding the assets. Here’s why Understanding...
Impermanent loss has been the most central threat to liquidity providers (LPs) in decentralized finance (DeFi). It’s a recurring theme that doesn’t seem to stop irritating these champs. This occurs when the price of a token pair in a liquidity pool fluctuates drastically. Consequently, LP’s token holdings are reduced relative...
The promise of DeFi is tantalizing: democratized finance, accessible to all, with returns that make traditional banks blush. The road to this decentralized utopia is paved with rug pulls, hacks, and the ever-present peril of impermanent loss. Curve Finance, via its new Yield Basis protocol, says it has figured out...
With this launch, Curve Finance has also launched Yield Basis. This novel technology, called the Unified Liquidity Model, intends to prevent all impermanent loss for Bitcoin and Ether liquidity providers. This move is a significant victory for the decentralized finance (DeFi) ecosystem. First, it gets right at a major concern...
It's got DeFi buzzing. The promise? Eliminate impermanent loss (IL) for BTC and ETH LPs. Sounds fantastic, right? So, before we anoint Curve the savior of DeFi, let’s look a little bit closer. It is time for us to learn the truth about what is going on.Impermanent Loss Finally Vanquished?Impermanent...
Yield Basis is a new Curve Finance protocol. Implementing this novel, cross-chain solution is expected to minimize impermanent loss for liquidity providers of tokenized versions of Bitcoin and Ether. Curve founder Dr. Michael Egorov told Cointelegraph that Yield Basis solves the impermanent loss problem that has plagued liquidity providers for...
With these new features Curve Finance is pushing the envelope of what’s possible with decentralized finance (DeFi). Their newly launched yield basis (YB) mechanism aims to completely free yield farmers from impermanent loss. The system leverages 200% overcollateralization and an innovative token model. In this model, customers are rewarded for...
Impermanent Loss is a major concern for liquidity providers in decentralized finance (DeFi). This is the case when an asset’s price in a liquidity pool increases or decreases dramatically. This makes the appreciation value of a liquidity provider’s contribution less attractive than simply holding the assets outside of the pool....
Decentralized Finance. The allure of sky-high APYs, passive income raining down into your wallet as you snooze. Sounds like a crypto dream, right? There's a monster lurking in the shadows, ready to turn your sweet slumber into a nightmare: Impermanent Loss.High Yields Hide Real DangersLet's be blunt. Those three-digit APYs...
This world of decentralized finance (DeFi) is moving so quickly. Fortunately, innovative new solutions are helping address the challenges liquidity providers face. In fact, one of the largest challenges in crypto liquidity is impermanent loss. It occurs when the prices of tokens in a liquidity pool diverge, making a provider’s...