Trish🫧 pfp
Trish🫧
@trish
🧠I’ve had limited but only very positive experiences providing liquidity. I don’t deposit anything I will need in an emergency. I think I mostly understand impermanent loss but I don’t think I fully understand ways in which it could go south fast. At what point do I lose it all? I’ve read all the FAQ’s but I’m looking for examples or personal stories and what you learned. Would you mind sharing? By brain processes better this way
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TheModestThief🎩  pfp
TheModestThief🎩
@thief
if you understand impermanent loss, as a very inexperienced lp provider, i can see 2 other things: 1. the biggest lp provider withdraws, then your lp is stuck because pulling out will kill it from slippage 2. an actual rug on the underlying token, price go to zero and you will hold a huge amount of worthless tokens
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chun pfp
chun
@zkchun.eth
no crazy anecdotes beyond memecoin going to zero and holding the bag in the lp. not sure where you're lp-ing but recommend looking into how uni v3 IL works differently from v2. IL in concentrated liquidity pools is interesting and useful to know. also look into Loss vs Rebalancing (LVR).
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