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 raydium liquidity pool?
Raydium farms are pools that allow liquidity providers to generate RAY tokens as farming rewards in addition to the trading fees contributed to the pool .
Read moreHow do you create a liquidity pool on raydium?
Once you’ve created the market on Serum, go to the liquidity page on Raydium. Click the + symbol in the upper right corner. 3. On the create pool page, input the market ID from Serum, then click ‘Confirm’.
Read moreHow does raydium farming work?
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!
Read moreCan you recover impermanent loss?
Impermanent loss is based on sheet value, meaning it can keep changing until an action is taken . When you decide to withdraw after a price change, your loss will become permanent.
Read moreWhat is a 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.
Read moreWhat is impermanent loss in 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.
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