Skip to main content
Learn

What Is “Impermanent Loss” and How Does It Relate to Providing Liquidity in DeFi?

Temporary loss for a liquidity provider when asset prices change compared to just holding the assets.
Greeks.Live22.11.25

What Is “Impermanent Loss” and How Does It Relate to Providing Liquidity in DeFi?

Impermanent loss is the temporary loss of funds experienced by a liquidity provider (LP) due to the price change of their deposited assets compared to simply holding them. It occurs in automated market maker pools.

If the price of a token in the pool changes significantly, the LP's position value is less than if they had just held the tokens.

What Is ‘Impermanent Loss’ in the Context of Decentralized Finance (DeFi) Liquidity Pools?
Define ‘Impermanent Loss’ in the Context of DAO Treasury Management
What Is “Impermanent Loss” in the Context of AMM Liquidity Pools?
What Is the Concept of “Impermanent Loss” in AMM Liquidity Provision?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.