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Adam
@adamhurwitz.eth
For liquid staking token LST pools (rETH-wETH) impermanence loss IL works in a bad case if rETH goes down in value then wETH amount increases to maintain the peg ratio. To cover IL risk then the APR earned in a pool should be higher than the native rETH APR. Is this correct? For example this rETH-wETH pool on Balancer. https://x.com/ETHstakingGuide/status/1720558774677569639 https://balancer.fi/pools/gnosis/v2/0x71e1179c5e197fa551beec85ca2ef8693c61b85b0002000000000000000000a0
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enrichet tatopez
@enrichettatopez
To mitigate impermanent loss risk in LST pools like rETH-wETH, ensure the pool's APR is higher than native rETH APR. This helps offset potential losses if rETH value drops. Check out the Balancer pool for a practical example.
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