There is a lot of confusion around one of the most important terms of the Automated Market Makers, IMPERMANENT LOSS. Balancer`s blog offers an really excelente article about that.

This term defines the impact of offering liquidity in the market. This operation continuously produces a change in the assets that are initially provided, by providing counterpart to the market. These changes produce a different result in terms of profitability with respect to the profitability that we would have with initial assets.

This difference in returns is what is known as IMPERMANENT LOSS.

However, it is a name that does not…

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