Impermanent Loss Explained in 30 Seconds
Most beginners ignore it… then get rekt.
Here’s the quick math with Sept 2025 BNB data:
➡️Deposit: 1 $BNB ($890) + 890 $USDT .
➡️BNB rises 12% → pool rebalances.
➡️Value if you just held: $1,890.
➡️Value in pool: $1,886.
📉 Impermanent Loss = -$4 (0.21%).
📈 But fees earned: +$15.
Net result = still profit.
👉 How to beat IL:
Use correlated pairs (BNB/WBNB).
Stick to stablecoins (USDT/BUSD).
Make sure fees > losses.
⚡ Farming isn’t about avoiding IL—it’s about managing it.
Want me to drop a visual cheat sheet for IL?
#DeFi #YieldFarming #CryptoBasics #BinanceSquare