๐๐๐ฒ๐ฟ ๐๐ผ๐ป๐ฑ๐ฒ๐ฟ๐ฒ๐ฑ ๐๐ต๐ ๐ฝ๐ฟ๐ผ๐๐ถ๐ฑ๐ถ๐ป๐ด ๐๐ฒ๐๐ถ ๐น๐ถ๐พ๐๐ถ๐ฑ๐ถ๐๐ ๐ฐ๐ฎ๐ป ๐๐ผ๐บ๐ฒ๐๐ถ๐บ๐ฒ๐ ๐น๐ฒ๐ฎ๐๐ฒ ๐๐ผ๐ ๐๐ถ๐๐ต ๐น๐ฒ๐๐ ๐๐ฎ๐น๐๐ฒ ๐๐ต๐ฎ๐ป ๐๐ถ๐บ๐ฝ๐น๐ ๐ต๐ผ๐น๐ฑ๐ถ๐ป๐ด? ๐๐ป๐๐ฒ๐ฟ ๐๐บ๐ฝ๐ฒ๐ฟ๐บ๐ฎ๐ป๐ฒ๐ป๐ ๐๐ผ๐๐ ๐งโ๏ธ
๐๐ณ๐ข๐ธ๐ช๐ฏ๐จ ๐ง๐ณ๐ฐ๐ฎ ๐ง๐ฐ๐ถ๐ฏ๐ฅ๐ข๐ต๐ช๐ฐ๐ฏ๐ข๐ญ ๐ญ๐ฆ๐ด๐ด๐ฐ๐ฏ๐ด ๐ฐ๐ฏ #BinanceAcademy, ๐ฉ๐ฆ๐ณ๐ฆ ๐ช๐ด ๐บ๐ฐ๐ถ๐ณ ๐ฒ๐ถ๐ช๐ค๐ฌ ๐ญ๐ช๐ฒ๐ถ๐ช๐ฅ๐ช๐ต๐บ ๐ฑ๐ฐ๐ฐ๐ญ ๐ฃ๐ณ๐ฆ๐ข๐ฌ๐ฅ๐ฐ๐ธ๐ฏ:
1๏ธโฃ ๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐บ๐ฝ๐ฒ๐ฟ๐บ๐ฎ๐ป๐ฒ๐ป๐ ๐๐ผ๐๐?
โข It happens when the price ratio of the tokens you deposited into an automated market maker (AMM) pool changes, so at withdrawal your assets may be worth less than if you had just HODLed them.
2๏ธโฃ ๐ช๐ต๐ ๐๐ต๐ฒ ๐ฅ๐ฎ๐๐ถ๐ผ ๐ ๐ฎ๐๐๐ฒ๐ฟ๐:
โข AMMs price assets by the token ratio in the pool, so the bigger the price change in either direction, the larger the potential loss (around 5.7% for a 2x move, before fees).
3๏ธโฃ ๐ช๐ต๐ ๐๐ฃ๐ ๐ฆ๐๐ถ๐น๐น ๐ฃ๐ฎ๐ฟ๐๐ถ๐ฐ๐ถ๐ฝ๐ฎ๐๐ฒ:
โข Trading fees can partly or even fully offset the loss, and stablecoin pairs tend to carry lower risk.
โ ๏ธ ๐ฅ๐ถ๐๐ธ ๐ก๐ผ๐๐ฒ:
The loss becomes permanent once you withdraw at a changed ratio, and even stablecoins can depeg.
Expand your technical literacy, weigh fees against price risk ๐
๐ Learn more on Binance Academy: https://www.binance.com/en/academy/articles/impermanent-loss-explained
Crypto involves risk, this is not financial advice, Always DYOR ๐ก
#ImpermanentLoss #DeFi #LiquidityPools #CryptoEducation
Follow me for more ๐
๐๐ณ๐ข๐ธ๐ช๐ฏ๐จ ๐ง๐ณ๐ฐ๐ฎ ๐ง๐ฐ๐ถ๐ฏ๐ฅ๐ข๐ต๐ช๐ฐ๐ฏ๐ข๐ญ ๐ญ๐ฆ๐ด๐ด๐ฐ๐ฏ๐ด ๐ฐ๐ฏ #BinanceAcademy, ๐ฉ๐ฆ๐ณ๐ฆ ๐ช๐ด ๐บ๐ฐ๐ถ๐ณ ๐ฒ๐ถ๐ช๐ค๐ฌ ๐ญ๐ช๐ฒ๐ถ๐ช๐ฅ๐ช๐ต๐บ ๐ฑ๐ฐ๐ฐ๐ญ ๐ฃ๐ณ๐ฆ๐ข๐ฌ๐ฅ๐ฐ๐ธ๐ฏ:
1๏ธโฃ ๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐บ๐ฝ๐ฒ๐ฟ๐บ๐ฎ๐ป๐ฒ๐ป๐ ๐๐ผ๐๐?
โข It happens when the price ratio of the tokens you deposited into an automated market maker (AMM) pool changes, so at withdrawal your assets may be worth less than if you had just HODLed them.
2๏ธโฃ ๐ช๐ต๐ ๐๐ต๐ฒ ๐ฅ๐ฎ๐๐ถ๐ผ ๐ ๐ฎ๐๐๐ฒ๐ฟ๐:
โข AMMs price assets by the token ratio in the pool, so the bigger the price change in either direction, the larger the potential loss (around 5.7% for a 2x move, before fees).
3๏ธโฃ ๐ช๐ต๐ ๐๐ฃ๐ ๐ฆ๐๐ถ๐น๐น ๐ฃ๐ฎ๐ฟ๐๐ถ๐ฐ๐ถ๐ฝ๐ฎ๐๐ฒ:
โข Trading fees can partly or even fully offset the loss, and stablecoin pairs tend to carry lower risk.
โ ๏ธ ๐ฅ๐ถ๐๐ธ ๐ก๐ผ๐๐ฒ:
The loss becomes permanent once you withdraw at a changed ratio, and even stablecoins can depeg.
Expand your technical literacy, weigh fees against price risk ๐
๐ Learn more on Binance Academy: https://www.binance.com/en/academy/articles/impermanent-loss-explained
Crypto involves risk, this is not financial advice, Always DYOR ๐ก
#ImpermanentLoss #DeFi #LiquidityPools #CryptoEducation
Follow me for more ๐
