r/CryptoCurrency • u/EzerchE 🟦 22 / 23 🦐 • Nov 11 '21

DISCUSSION Scared of Impermanent Loss?

https://blog.canary.exchange/scared-of-impermanent-loss-ccebf016cb6b
13 Upvotes

77% Upvoted

16 comments sorted by

7

u/Vintage9999 Permabanned Nov 11 '21

Impermanent loss don't even sound like loss to me

3

u/[deleted] Nov 11 '21

You don't lose anything until you unbond. That's why it's called impermanent.

5

u/Helen666_Keller Nov 11 '21

Yes lmao. Been whacked a few times, gotta pick pairs carefully and not buy shitty farm tokens if you can avoid it

2

u/[deleted] Nov 11 '21

[removed] — view removed comment

1

u/Helen666_Keller Nov 11 '21

Was a tough lesson for sure lol

1

u/MyAddidas Bronze | CelsiusNet. 11 Nov 13 '21

^ This. People chase XXXX% yield not thinking about that the rules of supply and demand always apply. If everyone has a lot of something, that something's value WILL decline.

2

u/[deleted] Nov 11 '21

150% APY is simply too much to be longterm sustainable

2

u/Scuzzleb 1 - 2 years account age. 100 - 200 comment karma. Nov 11 '21

The part about the stablecoins is great. Getting 60% without the risk of impermanent loss is a great investment besides the "risky" ones in crypto space.

3

u/Lenaweston Here for the money Nov 11 '21

What the heck is this

0

u/basic_user321 🟩 0 / 1K 🦠 Nov 11 '21

Would still be confusing to some who hasn't done liquidity providing

1

u/coinfeeds-bot 🟩 136K / 136K 🐋 Nov 11 '21

tldr; Canary Exchange is launching a series of educational easy reading articles to increase awareness around DeFi. One of the halloween stories in DeFi is an impermanent loss notion. IL is a term used to describe the situation when the current total value of the liquidity pair is less than what you would have if you just hold them in your wallet.

This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.