Part 3/9:
When you enter a liquidity pool, you allocate a certain percentage of your deposit to each asset. For example, if you deposited $10,393, you might allocate 52% to Ethereum and 48% to Syrup. Should you have held these assets instead of entering the liquidity pool, your total value might differ significantly. By analyzing the divergence loss, you learn whether your liquidity pool position is truly generating profit or if you would have been better off simply holding the assets.