Glossary
Impermanent Loss Meaning: What Does Impermanent Loss Mean in Crypto?
Definition
Temporary loss when providing liquidity due to price divergence
IL is mitigated by stablecoin pairs; calculators help LPs assess risk, with losses up to 25% in volatile scenarios like ETH/BTC pools. IL Calculation Table: Price Change | IL %. 1.25x | 0.6%. 1.5x | 2.0%. 2x | 5.7%. 3x | 13.4%. 5x | 25.5%. Mitigation Strategies: Concentrated liquidity, stable pairs, single-sided staking, IL protection protocols.