What Is Impermanent Loss & How I Lost 45.8% of My Gains to It

Impermanent Loss plagues every yield farmer because it punishes your gains on the way up and on the way down. But even though it's risk, I'm not too worried about it as long as the assets I hold are good enough and the yield is high enough.

This video explains what is impermanent loss, what causes it and a real life example how I lost 45.8% to it.

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[ColeMorton]

Thanks for your videos, Denome. This information is super valuable and you're far ahead of the crowd.
Looking forward to future vids!

[dejan]

This is the best explanation ever! Every other youtuber just talks about some possible losses but without any real numbers and it's hard to picture what can happen. Thank you very much!

[cryptodredd]

Love your content. The best explanation I've seen so far. Thanks heaps!

[sorinvasiliu]

Excellent explanation, friend! Your videos are very much appreciated!

[stevetaylor]

Great comparisons and analogy that makes it easy to digest, well done, you have my subscribe

[ricky]

Thankyou so much for your complete explanation. Wish you good luck

[ZzwhiskeybkszZ]

Best IL video I've seen. Great work buddy

[Redbulpro]

Great video bro! I also lost some of my gains due to impermanent loss in the AUTO/WBNB pool. I dont really care tho, it was a lot of fun and I still made some good gains

[yaf]

Nice video! That is the reason I stopped providing liquidity in uniswap, at least for non-pegged pairs (correlated pairs are fairly safe => curv). Something I also like consider is stable/non-stable pairs (like DAI/ETH), I play on that sometimes as a form of dollar cost averaging

[riceballu]

Best explanation!! Always easier to understand with numbers!!

[bnsmoviesss]

Very good video! thanks for clarifying

[tezausbra]

good video and great explanation of how LP works

[canoori]

Thanks man. Love it. keep up the good work.

also, if you can talk about stable coin LP on Autofarm. Like BUSD/BDO pool. Since the price of BDO will eventually at some point go back to 1$. Will we have that impermanent loss? or its just gains. From what i understand, this might be the safest way to yield farm without the risk of impermanent loss.

[mussinata]

Awesome explanation, great job and thanks for sharing. One question: I would then provide liquidity to a pool only when I estimate the value of both coins would go sideways (otherwise it would be more profitable holding/stacking) correct?

[IgorMarchuk]

thanks! informative as always.

glad to see you switched to mac :) M1 hopefully

[sylvain]

Nice video with informative tricks. I faced that impermanent loss providing liquidity with some BNB/shitcoin.
I found that maybe the most suitable thing to do is just to stake the token to receive reward on that same token and then unstake all and sell everything when the price goes up. It is true that with staking you dont have huge APY return but you don't have to deal with impermanent loss

[BEASTNYC]

great video about IL - easy to understand! On average How long do you hold positions - a week, two weeks?

[victorvasquez]

Freaking cool explanation.. Finally I understand.
Could you also let us know if it is better to be a LP or just staking?

Thanks

[asutin]

thanks for making such an in depth video

[ojularikabir]

Thank you Man for the video... My question is apart from impermanent loss, what else is or are the risks on autofarm, like can one also be worried that a rugpull can occur for example. Thanks