Difference between revisions of "Impermanent loss"

Created page with "Impermanent loss (commonly abbreviated as IL) is one of the fundamental concepts introduced by DeFi. It is the main risk, beside token volatility of the user who wishes to provide liquidity in AMMs. Impermanent loss causes most LP position to be unprofitable and, given its non-intuitive nature, is often misunderstood by beginners. == Definition == Impermanent loss is the loss an LP (liquididy provider) is potentially subject to when he '''provides liquidity in a AMM poo..."