Impermanent loss
Last updated
Last updated
Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.
This also illustrates how much more money someone would have had if they simply held onto their assets instead of providing liquidity.
WalletNow automatically calculates and reports details about your "Liquidity Provider", including the exact amount of each token in the liquidity pool and associated the impermanent loss. All you need to do is click on the name of any LP Token:
And the following information will be displayed:
It will also show the most important transactions related that liquidity pool for your account: