{"id":20131,"date":"2022-06-17T13:32:19","date_gmt":"2022-06-17T13:32:19","guid":{"rendered":"https:\/\/yourcryptolibrary.com\/?page_id=20131"},"modified":"2023-02-02T13:56:36","modified_gmt":"2023-02-02T13:56:36","slug":"what-is-impermanent-loss-il","status":"publish","type":"page","link":"https:\/\/yourcryptolibrary.com\/nl\/defi\/what-is-impermanent-loss-il\/","title":{"rendered":"Wat is Impermanent Loss?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"20131\" class=\"elementor elementor-20131\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-15ddaef4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"15ddaef4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-12529faf\" data-id=\"12529faf\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-22301ba elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"22301ba\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-40bbfb2\" data-id=\"40bbfb2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3e66bab elementor-align-center elementor-widget elementor-widget-button\" data-id=\"3e66bab\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Learn more about cryptocurrrencies<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-5d9c104\" data-id=\"5d9c104\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ae17d99 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"ae17d99\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"\/exchanges\/\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Trade Crypto<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-4882130 elementor-toc--minimized-on-tablet elementor-widget elementor-widget-table-of-contents\" data-id=\"4882130\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;headings_by_tags&quot;:[&quot;h2&quot;,&quot;h3&quot;,&quot;h4&quot;],&quot;exclude_headings_by_selector&quot;:[],&quot;marker_view&quot;:&quot;numbers&quot;,&quot;no_headings_message&quot;:&quot;No headings were found on this page.&quot;,&quot;minimize_box&quot;:&quot;yes&quot;,&quot;minimized_on&quot;:&quot;tablet&quot;,&quot;hierarchical_view&quot;:&quot;yes&quot;,&quot;min_height&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"table-of-contents.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-toc__header\">\n\t\t\t\t\t\t<h4 class=\"elementor-toc__header-title\">\n\t\t\t\tTable of Contents\t\t\t<\/h4>\n\t\t\t\t\t\t\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--expand\" role=\"button\" tabindex=\"0\" aria-controls=\"elementor-toc__4882130\" aria-expanded=\"true\" aria-label=\"Open table of contents\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--collapse\" role=\"button\" tabindex=\"0\" aria-controls=\"elementor-toc__4882130\" aria-expanded=\"true\" aria-label=\"Close table of contents\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<div id=\"elementor-toc__4882130\" class=\"elementor-toc__body\">\n\t\t\t<div class=\"elementor-toc__spinner-container\">\n\t\t\t\t<i class=\"elementor-toc__spinner eicon-animation-spin eicon-loading\" aria-hidden=\"true\"><\/i>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-b7bd647 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b7bd647\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-bb5b4e4\" data-id=\"bb5b4e4\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f4bfb34 elementor-widget elementor-widget-text-editor\" data-id=\"f4bfb34\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>What is impermantent loss in Defi?<\/h2><p>Impermanent loss, is a phenomenon that has made its appearance with the advent of decentralized finance (<a href=\"https:\/\/yourcryptolibrary.com\/defi\/\">DeFi<\/a>). The &#8216;temporary loss&#8217; is the result of an algorithmic rebalancing formula that AMM protocols use.<\/p><p>Simply put, the term &#8216;temporary loss&#8217; is used to describe the difference in value between holding tokens in an AMM protocol on the one hand and holding those same tokens outside the protocol on the other. Only when prices return to exactly where they were when you entered the pool will there be no more loss. If the price does not return and you were to trade your tokens at that time, you would do so at a loss. The video below explains &#8216;impermanent loss&#8217; in detail.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-b51f7f7\" data-id=\"b51f7f7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fa731b5 elementor-widget elementor-widget-video\" data-id=\"fa731b5\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/www.youtube.com\\\/watch?v=_m6Mowq3Ptk&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-80ee8ca elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"80ee8ca\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-afcc0c2\" data-id=\"afcc0c2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-af94f22 elementor-widget elementor-widget-text-editor\" data-id=\"af94f22\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>How is impermanent loss calculated?<\/h2><p>Because AMM rebalancing formulas prioritize a predetermined ratio, the value of your tokens may differ from the value of those same tokens outside the pool. To better understand how an impermanent loss works exactly, let&#8217;s look at an example<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-c3b1271 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c3b1271\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-4fd35b3\" data-id=\"4fd35b3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d0ce667 elementor-widget elementor-widget-text-editor\" data-id=\"d0ce667\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>Example Impermanent Loss<\/h2><p>Here&#8217;s an example to help explain the concept of impermanent loss:<\/p><p>Suppose you provide liquidity to a pool consisting of 50% ETH and 50% USDC, with 1 ETH and 1000 USDC as the tokens added. The initial price of 1 ETH is $1000 and 1000 USDC is $1000.<\/p><p>Due to extreme volatility, the price of ETH doubles to $2000, making the value of 0.5 ETH equal to $1000, the same as the value of 1000 USDC. The AMM protocol sells 0.5 ETH to keep the ratio balanced and adds 500 USDC to the USDC holdings, resulting in a total value of $2500.<\/p><p>Now, if you decide to withdraw your tokens from the protocol, you will have 1000 USDC and 0.5 ETH. The value of 1000 USDC is still $1000, but the value of 0.5 ETH has now increased to $1000, making the total value $2000.<\/p><p>However, if the price of ETH continues to rise, the value of 0.5 ETH in your wallet will increase, while the value of 1000 USDC will remain the same. <span style=\"text-decoration: underline;\">This means that the value of your holdings in the liquidity pool will be lower compared to if you had kept your tokens in your own wallet. This difference in value is the impermanent loss.<\/span><\/p><p>In summary, impermanent loss occurs when the price of a token in a liquidity pool increases, causing a loss for the liquidity provider compared to holders of the token outside the protocol.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-9e51682\" data-id=\"9e51682\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4084ebf elementor-widget elementor-widget-text-editor\" data-id=\"4084ebf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<table><tbody><tr><td>Price change Token<\/td><td>Reduction token quantity %<\/td><\/tr><tr><td>1.25x<\/td><td>0.6% Loss<\/td><\/tr><tr><td>1.5x<\/td><td>2.0% Loss<\/td><\/tr><tr><td>1.75x<\/td><td>3.8% Loss<\/td><\/tr><tr><td>2x<\/td><td>5.7% Loss<\/td><\/tr><tr><td>3x<\/td><td>13.4% Loss<\/td><\/tr><tr><td>4x<\/td><td>20.0% Loss<\/td><\/tr><tr><td>5x<\/td><td>25.5% Loss<\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-2010276 elementor-widget elementor-widget-heading\" data-id=\"2010276\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Best tools for calculating impermanent loss\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-6a1b7d7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6a1b7d7\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-018dfdf\" data-id=\"018dfdf\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-69fe0c3 elementor-widget elementor-widget-image\" data-id=\"69fe0c3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"300\" height=\"298\" src=\"https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2022\/10\/IL-Calculator-300x298.png\" class=\"attachment-medium size-medium wp-image-24460\" alt=\"\" srcset=\"https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2022\/10\/IL-Calculator-300x298.png 300w, https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2022\/10\/IL-Calculator-150x150.png 150w, https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2022\/10\/IL-Calculator-12x12.png 12w, https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2022\/10\/IL-Calculator.png 512w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Simple Calculator<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-ecf6170\" data-id=\"ecf6170\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-73fa488 elementor-widget elementor-widget-text-editor\" data-id=\"73fa488\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2><span style=\"color: var( --e-global-color-primary ); font-family: var( --e-global-typography-primary-font-family ), Sans-serif; font-size: 1.75rem; font-weight: var( --e-global-typography-primary-font-weight );\">Simple calculator<\/span><\/h2><p>With <a href=\"https:\/\/dailydefi.org\/tools\/impermanent-loss-calculator\/\" target=\"_blank\" rel=\"noopener\">Simple calculator<\/a> you can calculate how much &#8216;impermanent loss&#8217; one is likely to incur before providing liquidity. The initial price of the tokens at the time you are going to provide liquidity and the expected price of the tokens are needed to calculate the &#8216;impermanent loss&#8217;.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-8cb3a42 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8cb3a42\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-cfa67df\" data-id=\"cfa67df\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-184779b elementor-widget elementor-widget-image\" data-id=\"184779b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"206\" src=\"https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2022\/11\/Baller-Impermanent-Loss-300x206.png\" class=\"attachment-medium size-medium wp-image-25643\" alt=\"Baller Impermanent Loss\" srcset=\"https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2022\/11\/Baller-Impermanent-Loss-300x206.png 300w, https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2022\/11\/Baller-Impermanent-Loss-18x12.png 18w, https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2022\/11\/Baller-Impermanent-Loss.png 680w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Baller App<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-de24462\" data-id=\"de24462\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c9c3a8b elementor-widget elementor-widget-text-editor\" data-id=\"c9c3a8b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3>Baller Netlify<\/h3><p><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-weight: var( --e-global-typography-text-font-weight ); font-size: 1rem;\">You can also play around with the <\/span><a style=\"font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-weight: var( --e-global-typography-text-font-weight ); font-size: 1rem; background-color: #ffffff;\" href=\"https:\/\/baller.netlify.app\/\" target=\"_blank\" rel=\"noopener\">baller app<\/a><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-weight: var( --e-global-typography-text-font-weight ); font-size: 1rem;\">, to see the effect of impermanent loss. Where you can play with a multi-dimensional pools examples. Where the IL will be higher when the assets diverge in prices.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9a489b2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9a489b2\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wide\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-b825031\" data-id=\"b825031\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6a0fba9 elementor-widget elementor-widget-image\" data-id=\"6a0fba9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2021\/12\/ycl-logo.png\" class=\"attachment-large size-large wp-image-9354\" alt=\"\" srcset=\"https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2021\/12\/ycl-logo.png 400w, https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2021\/12\/ycl-logo-300x300.png 300w, https:\/\/yourcryptolibrary.com\/wp-content\/uploads\/2021\/12\/ycl-logo-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-2c1701f\" data-id=\"2c1701f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-764ec06 elementor-widget elementor-widget-heading\" data-id=\"764ec06\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conclusion<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-053b16b elementor-widget elementor-widget-text-editor\" data-id=\"053b16b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Simply put, &#8216;impermanent loss&#8217;, is the loss that occurs when providing liquidity compared to just keeping the tokens in your wallet. This is the result of the rebalancing formulas that keeps the balance of the number of tokens in the pool in proportion.<\/p><p>This risk can be solved by using pools with other ratios such as; 80\/10 &#8211; 95\/5 so impermanent loss will not have such a big impact. Impermanent Loss can cause problems during periods of high volatility and so is important to understand when looking to provide liquidity.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Learn more about cryptocurrrencies Trade Crypto Table of Contents What is impermantent loss in Defi? Impermanent loss, is a phenomenon that has made its appearance with the advent of decentralized finance (DeFi). The &#8216;temporary loss&#8217; is the result of an algorithmic rebalancing formula that AMM protocols use. Simply put, the term &#8216;temporary loss&#8217; is used [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":27417,"parent":956,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-20131","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Impermanent Loss?<\/title>\n<meta name=\"description\" content=\"Learn more about Impermanent Loss, a frequently looked over aspect of yield farming and how it is stealing your potential profits...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/yourcryptolibrary.com\/nl\/defi\/what-is-impermanent-loss-il\/\" \/>\n<meta property=\"og:locale\" content=\"nl_NL\" 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