โ Post 1: What is impermanent loss? ๐งฎ
Impermanent loss happens when you provide liquidity to a pool (e.g., ETH/USDT), and token prices move a lot from when you deposited.
You still earn fees and rewards, but the value of your tokens can end up lower than if you had just held them.
โจ Tips to reduce risk:
โ Choose stablecoin pools (e.g., USDT/USDC)
โ Pick assets that tend to move together
๐ก Have you experienced impermanent loss?
๐ฌ Share your experience below!