Aug 12, 2025 · The loss is “impermanent” because if the price ratio returns to its previous state, the loss would disappear. Note that this example does not account for trading fees.

Aug 22, 2025 · Impermanent loss happens when the value of your tokens drops after you add them to a liquidity pool, compared to simply holding them. It’s caused by a change in the price ratio between …

Let’s take a look at an example to better understand how impermanent loss works. Jonathan deposits $500 of Ethereum and $500 of Polygon into a $10,000 liquidity pool.

Feb 3, 2026 · Learn what impermanent loss is, why it happens in DeFi, and how simple math explains it. Clear examples, tables, and tips for beginners.

Nov 13, 2024 · Let’s dive into an example to make impermanent loss crystal clear. Imagine you’ve added Ether and Dai to a liquidity pool.

Nov 6, 2023 · Impermanent loss is a risk affecting liquidity providers who add crypto assets to the pools of decentralized exchanges (DEXs). In this guide, we’ll show you how it works and the best ways to …

This guide explains what is impermanent loss, when it happens, how to measure it in simple steps, and how to lower the risk. We will use plain words, small math, two clear tables, and real-world style …

Nov 26, 2025 · Impermanent loss is the difference between: The value of the same tokens after being in a liquidity pool, when prices have changed. If the second value is lower, the liquidity provider (LP) …

Sep 25, 2024 · However, due to volatile asset prices and the AMM mechanism, the value of assets locked in a liquidity pool can sometimes decrease compared to if the liquidity provider simply held the …

Oct 17, 2023 · Learn about Impermanent Loss, a crucial concept in DeFi liquidity pools, and how to navigate and leverage it. Impermanent Loss (IL) refers to the temporary decrease in value …