Impermanent loss is the key concept to understand when providing liquidity to a pool, pairing two tokens with each other. The following video explains that better than I do.
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When I provided liquidity to the ETH-WLEO pool on Uniswap, I ended up with more LEO and less ETH. This was counter-balanced through the extra incentive of the pool, in form of the monthly LEO payouts. SO I did make a profit afterall. On CubFinance you constantly earn CUB, so that also creates an incentive to ignore the impermanent loss.
Perfect. Thanks for sharing the video!! Will definitely go into details, it's interesting.
Posted Using LeoFinance Beta