What is impermanent loss and how to avoid it?

The difference between the LP tokens’ value and the underlying tokens’ theoretical value if they hadn’t been paired leads to IL. Let’s look at a hypothetical situation to see how impermanent/temporary loss occurs. Suppose a liquidity provider with 10 ETH wants to offer liquidity to a 50/50 ETH/USDT pool. They’ll need to deposit 10 ETH […]