How Does the Concept of “Divergence Loss” Relate to Impermanent Loss?

"Divergence loss" is simply an alternative, and perhaps more descriptive, term for impermanent loss. It emphasizes that the loss is caused by the divergence of the token's price ratio from the ratio at the time of deposit.

It highlights the core mechanism: the loss is a function of how far the current price ratio has moved from the initial ratio. The term "impermanent" is used because the loss vanishes if the ratio returns to the original state, while "divergence" focuses on the cause.