Impermanent loss (IL) is the risk that liquidity providers take in exchange for fees they earn in liquidity pools . If IL exceeds fees earned by a user when they withdraw, it means the user has suffered negative returns compared with simply holding their tokens outside the pool.
Read moreWhat is the max impermanent loss?
We call this loss “Impermanent Lose”. It’s technically impossible to reduce 0 , but under %1 loose rate is perfect value, as well as over %5 lose is alarm about your losses. Let’s explains some examples. Notes: If you use USDT or other stable coins, price change should be 0.
Read moreWhat is Uniswap impermanent loss?
Impermanent loss is a phenomenon that occurs to LPs on AMMs when the spot price of the assets they have added to a liquidity pool changes . Since liquidity providers pair two assets together to form a position, the ratio of coins in the position changes when asset spot prices change.
Read moreHow much is a CAKE LP worth?
The CAKE-BNB LP price is set at $128 . A minimum commitment of 0.04 LPs is needed to get the participation achievement. IF YOU DON’T COMMIT ENOUGH LP TOKENS, YOU MAY NOT RECEIVE ANY WATCH TOKENS AT ALL AND WILL RECEIVE A FULL REFUND FOR YOUR LP TOKENS!
Read moreHow is LP APY calculated?
In simple words, we will calculate the Total Reward Token Price Per Year, divide it by the Total Price of LP Tokens in the Pool and then multiply it by 100 for converting it to percentage .
Read moreHow are LP tokens calculated?
For example, if you contribute $10 USD worth of assets to a Balancer pool that has a total worth of $100, you would receive 10% of that pool’s LP tokens . You receive 10% of the LP tokens because you own 10% of the crypto liquidity pool. The LP tokens become your claim to your share of the pool’s assets.
Read moreHow does raydium make money?
Raydium farms allow liquidity providers to earn tokens as reward incentives for providing liquidity, in addition to trading fees. Stakers in Raydium farms earn RAY while stakers in Fusion pools can earn project tokens!
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