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
Zero Knowledge Proof
Cryptographic proof for 2 parties to verify a value without revealing what the value is.
Enterprise Ethereum Alliance (EEA)
Enterprise Ethereum Alliance is made up for a group of Ethereum developers, corporations as well as startups who are collaborating to find ways to use Ethereum for business applications.
Permissioned Blockchain
It is a private blockchain where the nodes must be previously authorized by a central entity.
Block Explorer
Application or websites which display information such as status of transactions or data contained in a block of a given public blockchain network.
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.