Hi guys, i know that the question was asked alot

Question

Hi guys, i know that the question was asked alot

and i know how the Impermanent Loss works.
But Kevin Söll once said in a video that having Liquidity Mining pair dUSD-DFI in an environment when DFI is rising would be the most risky thing.

Would it be a better Idea to remove LM pair now, wait for the rise to end (e.g. until $5) and then reenter the LM Pool?

#blockchain #cryptocurrency #defichain #english

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25.03.2022

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Zachary Chan · Accepted Answer

Completely up to you. Impermanent Loss is something everyone participating in LM has to face. That is basically the risk. If you are more risk adverse, then you could go into other lm pairs that have either less movement, or less perceived volatility, or a pair that is more complementary to each other (like BTC-DFi). If you are even more risk adverse, then you could go into staking, and just reaping blockchain emissions while preserving your principle DFI quantity. The decisions you’re thinking about is perfectly normal to anguish over LM. However, I will play devil’s advocate and ask. How do you know DFI will ‘stabilise’ at $5? How do you know it won’t drop again? If it keeps going up beyond >$5, how much more time will you wait?

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