Why Are Stablecoin Pools Less Susceptible to Significant Impermanent Loss?
Stablecoin pools are less susceptible because the tokens are designed to maintain a 1:1 price ratio, meaning the price divergence is minimal. Impermanent loss is directly proportional to the change in the price ratio.
Since the ratio of two stablecoins is intended to stay near one, the opportunity cost compared to holding the assets is negligible, making IL minimal unless one stablecoin significantly de-pegs.