A new study by Bancor, a decentralized trading protocol, has shown that more than 50% of Uniswap liquidity providers are losing money due to a phenomenon known as impermanent loss (IL).
Read moreWhat is an impermanent loss?
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.
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