Impermanent Loss
By CoinGecko | Updated on Aug 12, 2021
Impermanent loss may occur when you provide liquidity to the AMMs. Impermanent loss is similar to measuring your opportunity cost of holding the token within the pools versus holding them in your wallet. Note: the loss is not realized until you remove your tokens from the liquidity pool. The higher the divergence between the value of holding your tokens in the pool and wallet, the higher is the impermanent loss.
Related Terms
Crypto Bubble
It is a speculation in the cryptocurrencies and the price of cryptocurrencies would go extremely high before the bubble bursts.
Miners
Contributors to a blockchain taking part in the process of mining.
Gas
A unit of measurement of the computational effort in conducting transactions or smart contracts on Ethereum blockchain.
Sell wall
Anomalously large sell order(s) at a single price point that reflects as a "wall" in the order book.
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.