Lp Impermanent Loss
A source-aware briefing for checking the record before you act.
A source-aware briefing for checking the record before you act.
A source-aware briefing for checking the record before you act.
LP income is not free yield. Price movement between the pool assets changes your exposure.
Start with public records
Uniswap defines impermanent loss as the loss in value relative to holding the assets outside the pool when token prices change after liquidity is added.
Source note
LP decisions should start with exposure, not APR marketing.
Source note
Yield language often hides that you are making an active market and inventory decision.
Primary sources
This is educational information only. It is not financial, legal, or investment advice. Always do your own research and verify everything yourself.
How to use this guide
Compare the source you plan to use against this briefing. Confirm it independently, and stop if the public record does not match the message.