Impermanent Loss

By: WEEX|2024/10/26 08:13:29

Impermanent Loss refers to the temporary loss of value experienced by liquidity providers in automated market makers (AMMs) when the price of their deposited assets fluctuates compared to when they initially deposited them. This occurs because AMMs, such as Uniswap, require liquidity providers to deposit an equal value of two assets into a liquidity pool. When the price of one of the assets changes relative to the other, the AMM automatically adjusts the pool's asset ratios to maintain balance. If the liquidity provider withdraws their assets during this fluctuation, they may receive a lower value compared to holding the assets outside the pool. However, the loss is "impermanent" because the value can recover if the asset prices return to their original ratio.

Initial Coin Offering (ICO)Immutability

Where Is Cryptocurrency Legal? A Global Map for 2025

Discover which countries are crypto-legal and friendly in 2025. Our guide covers global regulations to help you invest and operate safely.

WEEX|2025/07/18 09:32:02

What are Tokenized US Stocks: How They Work, Models, and Future Development

Tokenized US stocks are digital versions of real stocks on a blockchain. This guide covers their history, how they work, different models, and future.

WEEX|2025/07/18 09:08:28

Limoverse (LIMO) to Launch on WEEX with LIMO USDT Spot Pair

Limoverse (LIMO) will be listed on WEEX, and the LIMO USDT spot trading pair will be available soon. As a Web3-powered health and wellness ecosystem, Limoverse (LIMO) integrates blockchain innovation into lifestyle rewards, offering users real utility with its $LIMO token.

WEEX|2025/07/18 05:40:30

RUDI USDT Trading Now Available on WEEX Spot

WEEX is excited to list RUDI on spot trading, with RUDI USDT trading kicking off July 17, 2025 at 10:00 UTC. Inspired by Elon Musk’s Grok AI mascot, RUDI is a high-volume Solana-based meme token gaining rapid traction.

WEEX|2025/07/18 03:18:44

Hyperion (RION) Debuts on WEEX Spot – RION USDT Pair Now Live

WEEX has added Hyperion (RION) to its spot trading platform, with RION USDT trading beginning July 17, 2025 at 10:00 UTC. Hyperion is a high-performance DeFi layer on Aptos, powered by parallel execution and backed by top investors.

WEEX|2025/07/18 03:10:35