The main point of contention in AMM discussions is Impermanent Loss.

Short-term BTC Holders In Loss Is Spiking As BTC trends downward in recent weeks, more short-term holders...(STH) of spot BTC have been holding at a loss....Furthermore, long-term holders (LTH) have been affected as holders in loss went up to near-September...

Loss Versus Rebalancing (LVR) is a metric designed to quantify the impact of adverse selection on AMM...Once the price of ETH returns to $1,000, impermanent loss would be 0, while LVR would be >0....Impermanent loss only looks at a starting and ending point, and compares LP performance to that of an...

...delved into during our conversation: Paradex’s differentiated risk management, particularly socialized losses...Paradex ditches Auto-Deleveraging (ADL) for a differentiated approach by the splitting of socialized losses...First, socialized losses tackle solvency alone: apply temporary haircuts to withdrawals, spreading the...

Bancor recently upgraded to Bancor v2.1 – which uniquely featured Impermanent Loss insurance facilitated...Bancor’s IL insurance is retroactive and tied to measurable economic loss by LPs....and $980M TVL. $21.8M of Bancor’s non-BNT liquidity ($46.3m) is currently protected under Bancor’s impermanent...loss insurance.

Bancor recently upgraded to Bancor v2.1 – which uniquely featured Impermanent Loss insurance facilitated...Bancor’s IL insurance is retroactive and tied to measurable economic loss by LPs....and $980M TVL. $21.8M of Bancor’s non-BNT liquidity ($46.3m) is currently protected under Bancor’s impermanent...loss insurance.

The current maximum APY is 34.59%, not factoring in Impermanent Loss....This is due to the fact that Impermanent Loss hits doubly as hard for AMPL....rebases at high AMPL values ($2) are worth more than rebases at lower AMPL values ($1.2), and such, LP  impermanent...loss is exacerbated in these market conditions.

...emergency module necessitates a governance vote, which takes time to coordinate and could lead to a loss...would be the first vault that utilizes Uniswap liquidity provision and actively takes on the risk of impermanent...loss....Most yield farming strategies involve Uniswap LP tokens and require users to bear the risk of impermanent...

Therefore, holding Squeeth over extended periods during sideways and bear markets may cause a loss in...The downside is that this concentration of liquidity amplifies impermanent losses and requires LPs to...are better for long-tail assets, helping compensate liquidity providers for volatility and thus the impermanent...loss risk they take on.

Impermanent Loss – Augur v2, Polymarket, and Omen marked a shift to CFMMs for prediction markets’ second...Impermanent loss has varying impacts on different AMM use cases....Impermanent loss renders CFMMs completely impractical for prediction markets and sports betting.

The highest fee would likely be used on pairs where there is an elevated risk of impermanent loss, to...loss (i.e. stable pools)....loss in certain situations Trading fees are no longer automatically reinvested back into the pool on...loss.

Algorithm optimisations: Algorithms that help reduce slippage, mitigate losses to arbitrageurs or optimise...Mitigating impermanent loss: Impermanent loss has been written about at length and I won’t go into it...Different algorithms and implementations that help mitigate impermanent loss are strong differentiators...

With the quadratic nature of impermanent loss, it is possible to hedge down to 1% accuracy with Squeeth...Hedging Options with Squeeth  Similar to impermanent loss in Uniswap V3 positions, options can be hedged...Uniswap V3 LP positions is a monumental development because a recent study by Bancor showed that hyper impermanent...

The current maximum APY is 34.59%, not factoring in Impermanent Loss....This is due to the fact that Impermanent Loss hits doubly as hard for AMPL....rebases at high AMPL values ($2) are worth more than rebases at lower AMPL values ($1.2), and such, LP  impermanent...loss is exacerbated in these market conditions.

We’ve also designed a liquidity mining incentive scheme that has impermanent loss insurance built in....It rewards you additional CVP in order to directly offset the impermanent loss that you specifically...If you withdraw liquidity prematurely then you’re only compensated for a portion of the impermanent loss...loss.

We’ve also designed a liquidity mining incentive scheme that has impermanent loss insurance built in....It rewards you additional CVP in order to directly offset the impermanent loss that you specifically...If you withdraw liquidity prematurely then you’re only compensated for a portion of the impermanent loss...loss.

loss if they are correct....loss....If a user is correct in their prediction, they can earn a substantial amount of fees with low impermanent...The risk of impermanent loss is therefore much higher with Mode Both.

...comparing the two, a 50/50 pool has better execution than an 80/20 pool, but also suffers from more impermanent...loss....The other benefit of the 80/20 pool we mentioned earlier was that it would have less impermanent loss...To recap, the benefits of an 80/20 pool are that it would materially increase yield and reduce impermanent...

loss” (IL) when it comes to Automated Market Makers (AMMs)....up this loss and restore an equal balance of assets....Simply put, Stoploss allows Liquidity Providers (LPs) to limit their impermanent losses on AMMs....’ maximum acceptable loss....You set a maximum IL and when your Impermanent Loss approaches that, liquidators will liquidate your...

As with any liquidity pool, impermanent loss is something that needs to be considered....However, since the top DeFi tokens are generally correlated with one another, impermanent loss may be...As long as the price of the DeFi tokens move proportionally with one another, impermanent loss shouldn...