Impermanent Loss
By CoinGecko | Updated on Aug 12, 2021
Impermanent loss may occur when you provide liquidity to the AMMs. Impermanent loss is similar to measuring your opportunity cost of holding the token within the pools versus holding them in your wallet. Note: the loss is not realized until you remove your tokens from the liquidity pool. The higher the divergence between the value of holding your tokens in the pool and wallet, the higher is the impermanent loss.
Related Terms
Stablecoin
Cryptocurrency with a price peg to fiat currencies or commodity.
Burned Tokens
Tokens which have been sent to addresses whose private key are not known, effectively becoming unusable.
Bullish
A term used to indicate positive sentiment towards the market or an asset, where investors believe that there will be upward price movement.
Peer to Peer
A communication protocol that does not require a central hub
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