Impermanent Loss: Understanding Impermanent Loss on Uniswap: Risks and ...

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Impermanent loss is a phenomenon unique to automated market makers (AMM) like Uniswap, and understanding its mathematical underpinnings is crucial for any liquidity provider (LP) looking to participate in these decentralized exchanges. At its core, impermanent loss describes the situation where the value of assets deposited in a liquidity pool becomes less than if those assets had been held in ...


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