When you do liquidity mining, you need to know about impermanent loss. In this video I explain how decentralized exchanges work, what impermanent loss is and how to deal with it.
Here’s the video:
Here’s the audio:
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How to use the DeFiChain mobile wallet: https://www.youtube.com/watch?v=CDxQmtbfID8
Here’s a list of all my videos about DeFiChain & Cake DeFi:
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- Impermanent loss calculator: https://decentyields.com/impermanent-loss-calculator
- DeFiChain DEX: https://defichain.com/dex/
- DeFiChain research paper: https://messari.io/article/defichain-decentralized-finance-secured-by-digital-gold
- Understanding Automated Market Makers: https://research.paradigm.xyz/amm-price-impact
- Impermanent loss chart: https://pintail.medium.com/uniswap-a-good-deal-for-liquidity-providers-104c0b6816f2
0:39 What is a decentralized exchange?
3:47 How does a decentralized exchange actually work?
4:28 What are liquidity pools?
7:59 Price impact
10:08 Why impermanent loss exists
11:58 Impermanent loss calculator with real examples
15:01 Real world example from my own portfolio