What DeFi Retail Investors Need to Understand About Impermanent Loss
Blog iconWill McTighe
May 27
TL:DR; passive retail LPs, could be losing A LOT of $$$ due to impermanent loss so they NEED to understand it.Alice the Liquidity ProviderPut yourself in the shoes of Alice, a long term believer in Crypto. Alice bought a lot of ETH and USDC early on and wanted to support these growing protocols, so she deposited her assets in Uniswap as a Liquidity Provider (LP) back in 2018. She left them there as she watched the price of ETH 5x. Alice was delighted (as we all would be!), she had 5x’d her mo...

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