Risk of Impermanent Loss in Liquidity Pools
Blog iconCross Chain Bridge
Aug 23
In the DeFi world, being a liquidity provider in a protocol such as Uniswap — a major decentralized exchange — can be very lucrative. If you’ve been involved in the world of crypto for a while, you may have come across the term “Impermanent Loss,” which is the risk that all liquidity providers are exposed to when depositing funds in dual-asset pools in DeFi protocols. To understand the concept of Impermanent Loss, you need to understand what Liquidity Pools are. Read our article about liquidi...

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