**Exchange rate protection and passive income in dollars via liquidity pools**

Using *liquidity pools* in crypto helps protect yourself from the devaluation of the real and generate income in dollars, but requires attention to three pillars:

1. **Price Range**

Set a range (e.g.: ETH between $2,800-$3,900) where your assets generate fees.

- *Pros*: Limits exposure to extreme volatility.

- *Risks*: If the price leaves the range, your assets stop yielding and are converted to one of the currencies in the pair.

- *Tip*: Choose wide ranges or stable pairs (USDT/USDC).

2. **Impermanent Loss**

Temporary loss when the pair prices diverge (e.g.: ETH rises 50%, reducing your balance).

3. **Volatility without Day Trading**

- *Automatic rebalancing*: Use yield aggregators (Yearn) for strategic adjustments.

- *Stablecoins*: Pairs like USDC/BUSD minimize risk.

- *Hodl + Fees*: Allocate long-term assets (BTC) in conservative ranges.

**Conclusion**

Manage risk with appropriate ranges, stable pairs, and automation. Education and diversification are essential in DeFi.

The DeFi Alchemist