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Content
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Kaloh pfp
Kaloh
@kaloh
Everyone should understand the pros and cons of providing liquidity (LPs) One of the positive radical concepts made possible by decentralized finance
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FluffheadChaser pfp
FluffheadChaser
@fluffheadchaser
Have you written about it in the past?
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Vova 🎩 pfp
Vova 🎩
@vova
Everyone should experience providing liquidity. And earning fees. And getting IL. Otherwise it’s too theoretical and too boring for most people. And yes - it is a radically new concept that simply wasn’t possible before
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DAC4 pfp
DAC4
@dac4
But LP exists before decentralized finance
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Joëlle pfp
Joëlle
@joellecharlotte
Ooh yes, I’m so afraid of experimenting with it as there’s always a disclaimer that it’s risky
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Taste 🎩🔵 pfp
Taste 🎩🔵
@tastegusto
Agree a 100% Not understanding the concept of impermanent loss got me totally rekt during defi summer 100 $degen
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Oliver Han pfp
Oliver Han
@oliverhan
Quite complicated and you have to watch it, but it has massive upsides if you got the time for it.
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xname pfp
xname
@xname
**Cons:** 1. **Impermanent Loss:** LPs are exposed to impermanent loss, which can occur when the price of the assets they provide liquidity for changes significantly. This can result in LPs losing some of their initial investment when compared to simply holding the assets.
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dtz pfp
dtz
@d0nuts
More fun to blindly ape
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VA BUDS 🔵 🎩🍖 pfp
VA BUDS 🔵 🎩🍖
@allinadazewook
Forreal! 4 $degen
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Gabriel 🎩 pfp
Gabriel 🎩
@phoebe-heess
Would read 95 $Degen
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Ethspresso 🚌🔵🎩 pfp
Ethspresso 🚌🔵🎩
@ethspresso.eth
True. It’s certainly not easy to understand though. Need a layman’s terms explainer, or some good real world analogies
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Watchmaker.base.eth 🎩 pfp
Watchmaker.base.eth 🎩
@watchmaker
This is something I’m going to look into soon
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Speakup 🎩🔮 🪔 pfp
Speakup 🎩🔮 🪔
@speakup
And if not, this is not the space for them.. 50 $DEGEN
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Alec James pfp
Alec James
@waj
From all I've read, it's tough for the little guys out here because of Impermanent Loss.... I've been tinkering with the idea of an AI-AMM that dynamically adjusts LP fees to counteract impermanent loss. In a similar spirit to how CowSwap created a MEV-resistant Dex
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hodl.money
@hodlmoney
Agreed!
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