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 impermanent loss yield farming?
Impermanent loss is closely associated with yield farming, a type of investment in which you lend your tokens to earn rewards . It might sound a bit like staking, but it is a bit more complex. Yield farming involves providing liquidity, or lending your tokens, to a liquidity pool.
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