Digital Assets

Impermanent Loss

Definition

What is Impermanent Loss?

The difference between the value of assets held in a liquidity pool and the value of simply holding them, before fees.

Example in practice

A large change in the token price creates impermanent loss for the provider.

Keep learning

A digitally represented asset that uses cryptographic and distributed-ledger systems for issuance or transfer.

An electronically represented item of value or right that can be owned or transferred.

A distributed record of transactions grouped into linked blocks and maintained by a network.

A scarce metal commonly held for industrial use, jewellery, or investment.

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