Impermanent losses cannot be avoided completely by liquidity providers. They can take steps to reduce this risk, such as using stablecoin pair and avoiding volatile pair.

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.

What is the best way to determine impermanent losses?

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