Impermanent Loss

What is Impermanent Loss?

Impermanent loss can arise when there is a price discrepancy between the two assets a trader holds on a DEX, usually a cryptocurrency and a stablecoin (such as USDC). When the price of the cryptocurrency falls relative to the stablecoin, the trader can experience a loss due to the difference in prices. This is known as Impermanent Loss.

How it works:

Impermanent Loss Calculator:

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