So do shares of liquidity go up in price as

Question

DeFiChain - International

₿ob ₿each

So do shares of liquidity go up in price as

the assets in them do?

#blockchain #cryptocurrency #defichain #english

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31.10.2021

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Larry · Accepted Answer

Larry

Yes, but how much the value of the liquidity pool tokens increases depends greatly on how both coins in the pair increase relative to each other. If they don't maintain the same ratio in value as when you bought into the pool, you'll end up with more of the less valuable coin and less of the more valuable coin than if you had just held and not invested into the pool. That's the concept of impermanent loss.

0

31.10.2021

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So do shares of liquidity go up in price as

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