Can explain to me concept of Impermanent Loss while

Question

Can explain to me concept of Impermanent Loss while

staking EGLD-MEX in the LP? Example I staked 5 EGLD and swapped 50% for MEX and staked in LP. So now if I wanted to withdrawl it what happens since EGLD and MEX dropped since i bought it

#blockchain #cryptocurrency #elrond #english

0

24.11.2021

4 ответов

13 просмотров

X-89

Impermanent loss occurs when the price of the tokens change - it adjusts your allocation accordingly

0

24.11.2021

A

I guess it’s the same.. you buy btc today at 56k… you stake it… and in 30 days btc is 40k? 🙂 and you decide to sell it at a loss. And 2 months later is 70k. the joys of crypto? lol

0

24.11.2021

Michael Stephen | MultiversX - Istari Vision

If you want to fully understand the concept of Impermanent loss, we at Istari made a comprehensive article about it: https://istarivision.medium.com/understanding-liquidity-and-liquidity-pools-4d4d3efa17a9

0

24.11.2021

Michael Stephen | MultiversX - Istari Vision · Accepted Answer

Depends on how much EGLD dropped and how much MEX dropped. If they both dropped the same % then you don't have impermanent loss, but if one dropped more than other then you will have some % impermanent loss. Here you have to understand that impermanent loss is not actually a loss per se, you are not losing tokens, you just lose the opportunity of gaining more value in $ when you LP vs when you just hold the tokens. But the MEX farm rewards will cover impermanent loss many times fold.

210 похожих чатов

Can explain to me concept of Impermanent Loss while

4 ответов

Похожие вопросы