What is Impermanent Loss?
⚠️ Impermanent Loss = risk when providing liquidity to AMMs (Automated Market Makers).
How it happens:
• Deposit 2 tokens (e.g., ETH + USDC)
• If token prices diverge → loss vs. simply holding
Key points:
• Larger price divergence → bigger loss
• Yield from fees may offset it
Tips to manage:
• Provide liquidity for stable pairs
• Choose platforms with incentives (high APY)
✅ Always consider impermanent loss before yield farming!
❓ Have you experienced impermanent loss?
