Impermanent loss is something that liquidity providers can’t avoid. But, liquidity providers can mitigate the risk by using stabilizecoin pairs or avoiding volatile pairs.

You can avoid losing temporary capital by choosing stablecoin pairs. Their value is not volatile and they have fewer arbitrage options, which lowers the risk of loss. On the other side, liquidity providers that use stablecoin pairs are not able to profit from bullish crypto markets.

How do you calculate impermanent loss

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