What is impermanent loss and how to avoid it? — adidaswilson

Impermanent loss is a phenomenon that occurs in the world of decentralized finance (DeFi) and is a result of the price volatility of cryptocurrencies. It occurs when the price of a cryptocurrency used as collateral in a DeFi protocol changes, leading to a loss in the value of the collateral compared to the value of the loan. This loss can be significant and is an important factor to…