Binance Alpha points system has been upgraded!
Now not only can wallet and CEX balances earn points, but participating in PancakeSwap V3 as an LP can also earn Alpha points! By providing liquidity to designated pools in the 【Alpha Wealth Management Center】, you can earn both annualized returns and points, a double reward.
The gameplay is more DeFi-oriented, with high returns but accompanied by impermanent loss risks. It is recommended to try coins with less volatility on BSC, such as: $ZKJ, $KOGE.
📌 Brief analysis of impermanent loss:
When providing LP, the system will automatically adjust the ratio of coins:
If it rises: The system sells your Tokens for you, resulting in fewer Tokens and reduced gains;
If it falls: The system buys Tokens for you, resulting in fewer USDT, effectively putting you in a loss.
In summary: It's not losing money, but rather making less than if you held the coins alone; this difference is what we call "impermanent loss".
