The threat of Impermanent Loss comes when there is a sizeable change in the price of one or both assets staked by the farmers into a liquidity pool . When it happens, oftentimes the loss outweighs the reward they receive from fees. When you stake CAKE as an individual asset in any of the eligible pools on pancakeswap.
Read moreWhat is impermanent loss in yield farming?
Liquidity pool impermanent loss happens when the price of a token increases or decreases after you deposit them in a liquidity pool . This change is considered a loss when the dollar value of your token at the time of your withdrawal becomes less than its amount at the time of deposit.
Read moreWhat is impermanent loss in liquidity pool?
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 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 is LP APR calculated?
Calculating LP Reward APR
Read moreHow do you calculate cake LP?
1 LP token = 1 CAKE + 1 BNB . Someone trades 10 CAKE for 10 BNB. Someone else trades 10 BNB for 10 CAKE. The CAKE/BNB liquidity pool now has 10.017 CAKE and 10.017 BNB.
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