What is Impermanent Loss in Crypto? (Animated + Examples)

Are you wondering what exactly Impermanent Loss means? In this video, we cover 2 easy to understand examples that explains the what causes impermanent loss when providing liquidity to a liquidity pool. There are many cryptocurrency topics that are difficult to grasp, but we hope to share some ideas that make understanding impermanent loss a little easier!

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About the Author: Todd Rivera

22 Comments

  1. Awesome video like all Whiteboard Crypto videos. I did not get the part where $7800 + $7692 equal $15295.

  2. The crypto market has been unfavorable for months and i keep losing my money selling off during dips, i'm very scared of holding right now. how do you guys still make so much?

  3. so long story short either if price go up or down you are pre much in loss providing liquidity pool assets lmao ?=

  4. This is a amazing Video. However I think we should also include possible earning if we stake the LP & how we reconcile the stake earring + LP fee again the IL. I do want to see more on how the LP fees get added to your LP or paid to you for creating the LP. It wasn’t as clear as your many other videos

  5. Thank you for your full focus on the job instead of focusing on proving yourself to others. You always tried to make everythïng as perfect as possible. Thanks for your tremendous support and dedication towards the work. Well Done recrypto Technology. ☺️☺️

  6. Thank you for your full focus on the job instead of focusing on proving yourself to others. You always tried to make everythïng as perfect as possible. Thanks for your tremendous support and dedication towards the work. Well Done recrypto Technology. ☺️☺️

  7. I want Recrypto technology on the Internet and their carïng team to play their respectïve roles in the USDT recovery as long as they can. I feel like they were born to Play these Roles.

  8. I want Recrypto technology on the Internet and their carïng team to play their respectïve roles in the USDT recovery as long as they can. I feel like they were born to Play these Roles.

  9. I've met alot of so-called hackers who claim to able to help me recover my lost Crypto worth about $93k but all was just wasted efforts. Everything changed when I met GeekyJeff .. a rep to a top notch Cyber company who helped recover every lost coin 🪙

  10. So obnoxious when you promote your videos at the cost of the quality of the info given in this video.

  11. Could someone break down example two using the AMM equation (x*y=K). I was able to get the first example but am struggling to get the same answers in the video for the second example.

    Much appreciated

  12. Feels weird to call it "impermanent" – like sure all unrealized losses could be impermanent 😛 Maybe I'm missing something that distinguishes it from other unrealized losses

  13. CAN’T DESCRIBED HOW MUCH YOUR HELP MEANRT TO ME. I FOREVER CHERISH YOUR GENEROUS ACT RECOVERYCRYPTOWORLD THANK YOU SO MUCH SIR FOR YOUR HELP, I DO APPRECIATE IT.

  14. CAN’T DESCRIBED HOW MUCH YOUR HELP MEANRT TO ME. I FOREVER CHERISH YOUR GENEROUS ACT RECOVERYCRYPTOWORLD THANK YOU SO MUCH SIR FOR YOUR HELP, I DO APPRECIATE IT.

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