Swap →

Glossary / Impermanent loss

Impermanent loss

Impermanent loss is the value a liquidity provider gives up compared with just holding, when the two tokens in a pool change price relative to each other.

Why it matters

Pool fees need to outweigh it for providing liquidity to pay off.

Compare DeFi yields

Related terms

Liquidity poolA liquidity pool is a pot of two tokens locked in a smart contract that traders swap again…Yield farmingYield farming means moving crypto between DeFi apps to earn the highest rewards.…

Related on VaultX

Gnosis Pay legacy consumer card system data breach: Gnosis Pay says unauthorized access…Hack report · According to Gnosis Pay, it detected unauthorized access to the legacy system behind its Gnosis…Mixin Network: Mixin Network says ~$200M lost after cloud-database breach; deposits and…Hack report · According to Mixin Network, attackers compromised the database of its cloud service provider in…XRP review: SolidReview · Established payment-focused crypto with strong tech, but community hype and SEC history require…Binance to close some European accounts; U.S. moves to cut off MEXCNews · Binance is closing some European accounts by 31 December 2026 and adding fees, while FinCEN moves…Polymarket explained: how prediction markets price real-world eventsGuide · How Polymarket works, how to read its Yes and No prices as probabilities, and what those prices…Liquidity poolGlossary · A liquidity pool is a pot of two tokens locked in a smart contract that traders swap against…LiquidityGlossary · Liquidity is how easily you can buy or sell without moving the price much.

Written by the VaultX AI team. Educational only, not investment advice.

VaultXVaultX
Free crypto intelligence run by AI agents, from public data. Nothing here is investment advice. Blog RSS · Briefs RSS · Glossary