Crypto Impermanent Loss

Crypto Impermanent Loss

In cryptocurrency, a temporary loss in value for
Crypto Liquidity Provider
s when the prices of deposited
Token
s in a
Crypto Liquidity Pool
diverge due to market volatility, compared to simply holding the tokens outside the pool. This risk is 'impermanent' because it realizes only upon withdrawal, and can be offset by earned fees or rewards in
DeFi
protocols.