Impermanent Loss

By: WEEX|2024/10/26 16:13:29
0
Share
copy

Impermanent Loss refers to the temporary loss of value experienced by liquidity providers in automated market makers (AMMs) when the price of their deposited assets fluctuates compared to when they initially deposited them. This occurs because AMMs, such as Uniswap, require liquidity providers to deposit an equal value of two assets into a liquidity pool. When the price of one of the assets changes relative to the other, the AMM automatically adjusts the pool's asset ratios to maintain balance. If the liquidity provider withdraws their assets during this fluctuation, they may receive a lower value compared to holding the assets outside the pool. However, the loss is "impermanent" because the value can recover if the asset prices return to their original ratio.

You may also like

WCOR Coin Explained: World Collective Oil Reserve on Solana

WCOR coin is a Solana token tied to an oil-reserve registry narrative. Here’s what it claims, current data, and the risks traders should watch.

What Is SAOS Crypto? Can SAOS Hit $0.1?

Is SAOS crypto a hidden gem? Strategic American Oil Supply on Solana explained. No hype, just data: $75K cap, locked LP, RWA narrative.

KAIO Airdrop: Share 50,000 USDT on WEEX with 0-Fee Trading

Trade KAIO/USDT with 0 fees on WEEX from May 7–14, 2026. New users can complete deposit and spot trading tasks to share 50,000 USDT in rewards.

What Is SAOS? Strategic American Oil Supply Token Explained

SAOS is a meme token on Solana with a 75,000 USD market cap and 22,000 USD locked liquidity, positioned around oil supply themes but lacking real asset backing

It thrives on pure narrative speculation, with no utility, website, or doxxed team, making it highly volatile and attention-dependent

Traders should distinguish SAOS from legitimate real-world asset projects, as its branding is speculative rather than substantive

Positive aspects include locked liquidity reducing rug pull risks, but low trading activity signals high uncertainty

How to Buy Public Asset Control (PAC) Token in 2026: Latest Solana Buying Guide

How to buy Public Asset Control (PAC) token in 2026, PAC contract address, Solana wallet setup, Jupiter swap guide, latest price, liquidity, and risks.

What Is Public Asset Control (PAC) Token and How Does It Work? Latest Solana PAC Token Guide

Public Asset Control (PAC) token explained. Learn what PAC is, how it works on Solana, current price snapshot, risks, and buying basics.

Popular coins

iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com