DeFi protocols that use Automated Market Makers (AMM) for liquidityLiquidity is a measure of the degree to which an asset or security can be quickly bought or sold in... Read More pools pose a unique riskThe plugin doesn't mess with the featured image feature either, but allows WordPress and the theme we choose to hide/show... Read More of impermanent lossImpermanent loss is a unique risk involved with providing liquidity to dual-asset pools in DeFi protocols. It is the difference... Read More. When you provide liquidity for an AMM-based liquidity poolLiquidity pools are shared pools of assets that are readily available for trading on a decentralized exchange. To form a... Read More, your cryptocurrencyA digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by... assets act as collateral. If the price of the asset changes while it is in the liquidity pool, you may suffer a loss even if no one uses your cryptocurrency to buy or sell anything.
