Check out the video linked at the bottom of #IL
Impermanent Loss Providing your tokens in a DEX's Liquidity Pool is very different to staking. Your ratio of tokens in the pool changes over time, dependent on the price of each token, so when you remove the liquidity you will likely end up with a different number of tokens than you started with. For example, in a LUNA/UST pool, if the price of Luna rises while you are in the pool, your position will change to have more UST and less Luna. If the price of Luna rises enough, you may be better off just holding the LUNA rather than providing liquidity. This is referred to as 'impermanent loss' (IL). Usually, incentives make it worth taking the risk of impermanent loss! Some links to help understand Impermanent Loss: Finematics video Coinmonks medium article Binance Academy Impermanent Loss calculator
https://www.youtube.com/watch?v=ZhgjZ7cj_Og&t=4s they have a lot of guides on the channel
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