Does Staking or Yield Farming Carry the Same Type of Impermanent Loss Risk as Providing Liquidity?
Staking, in the context of securing a Proof-of-Stake network, generally does not carry impermanent loss risk because it typically involves locking a single asset. Yield farming, however, often involves providing liquidity to an AMM, which inherently exposes the user to impermanent loss.
If yield farming is done by staking LP tokens, the underlying risk of IL from the liquidity pool remains.