Since luna has increased to 100, then i have impermanent

Question

Terra Classic - $LUNC

Les F. Goh Tho

Since luna has increased to 100, then i have impermanent

loss. if luna goes back down to 80 or so, then does that mean i lose less than if i withdrew the lp?

#blockchain #cryptocurrency #english #luna

0

27.12.2021

5 ответов

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Les F. Goh Tho Автор вопроса

because i earned less from terraswap lp than if i held. doesn’t this mean that if luna goes down again, i return nearer to the price i originally provided lp at? and thus all i lose is the limited gain from lp that i had when luna increased

0

27.12.2021

Les F. Goh Tho Автор вопроса

Max Power
Impermanent loss is caused by the pool being unbal...

okay, i understand that. However: if i put in luna-ust in the lp now, and it goes down to 80, then i lose more than if i had held, because IL

0

27.12.2021

Les F. Goh Tho Автор вопроса

Les F. Goh Tho
okay, i understand that. However: if i put in luna...

how does this work? if i withdraw now, will i lose more if luna goes back down to 80, than if i had kept it in lp?

0

27.12.2021

Andy

Les F. Goh Tho
how does this work? if i withdraw now, will i lose...

That's for sure

0

27.12.2021

Max Power · Accepted Answer

Impermanent loss is caused by the pool being unbalanced. If you check the totals of each token in the pool and they are roughly the same total value that's as good as it is gonna get. However due to arbitrage traders buying your tokens at below market value from the pool (in order to balance it), you do permanently lose a small amount but it isn't really a "loss" it just works out that you would have gained more by holding the tokens separately in your wallet rather than pooling them. The amount is very slight unless one token goes like 5-10x.

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Since luna has increased to 100, then i have impermanent

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