What is Impermanent Loss in Crypto Explained with Example | How to Calculate & Avoid it

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wilmaneves
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What is impermanent loss in crypto? Well, the term impermanent loss refers to when a liquidity provider has a temporary loss of funds because of volatility in a trading pair. Sounds like sci-fi? This video will help you understand its meaning, how to calculate and how can one avoid it.

Video Walkthrough,
0:00 Introduction
0:11 What is Impermanent Loss in Crypto
0:47 What is AMM & Role of AMM
1:48 How AMM Work (with Example)
2:43 Impermanent Loss Example
4:05 Why is it Called "Impermanent"
4:21 How to Calculate Impermanent Loss
7:17 3 Ways on How to Avoid Impermanent Loss
8:18 Conclusion: Key Takeaway

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Crypto Trading
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