Cryptocurrency Q&A
Can impermanent loss be positive?
Can impermanent loss be positive?
Giulia
Thu Nov 21 2024
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7 answers
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I'm wondering if impermanent loss, a concept often discussed in the context of cryptocurrency and decentralized finance, can ever be positive. Is there a scenario where this type of loss can actually benefit the investor?
7 answers
SoulWhisper
Sat Nov 23 2024
Fees and liquidity mining tokens offered by certain platforms, like Curve, serve as a means to counteract any potential impermanent loss.
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KpopStarlight
Sat Nov 23 2024
These incentives are designed to compensate users for the risks associated with providing liquidity to decentralized exchanges.
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Riccardo
Sat Nov 23 2024
When engaging in liquidity mining, the final outcome determines whether you experience an impermanent loss or a gain.
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isabella_oliver_musician
Fri Nov 22 2024
If the final number calculated is negative, it indicates that you have incurred an impermanent loss.
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Sara
Fri Nov 22 2024
In such cases, holding your tokens in a wallet would have been a more profitable option.
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