liquidity providers

Discover more about liquidity providers.

Tag: liquidity providers

Impermanent Loss: A Key Risk for DeFi Liquidity Providers
• Impermanent Loss

Impermanent Loss: A Key Risk for DeFi Liquidity Providers

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...