Tag: loss

Chainlink Keepers automates impermanent loss return on Armadillo

[ad_1] Armadillo, a multi-chain impermanent loss (IL) protection solution powered by the Crypto Volatility Index (CVI) from COTI, will be using Chainlink Keepers on Polygon to automate IL protection payout. CVI operates a basket of volatility products, including Armadillo’s impermanent loss protection. The CVI team developed a toolbox of...
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Azuki founder under fire, CryptoPunk sells for a major loss…

[ad_1] The founder of the $723.5 million Azuki NFT project who goes by “Zagabond” online caused a sh*tstorm yesterday after revealing that they had previously worked on three noabandoned NFT projects. After facing strong backlash from the NFT community, they have since apologized for their “shortcomings.” The three projects...
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What is impermanent loss and how to avoid it?

[ad_1] The difference between the LP tokens’ value and the underlying tokens’ theoretical value if they hadn’t been paired leads to IL. Let’s look at a hypothetical situation to see how impermanent/temporary loss occurs. Suppose a liquidity provider with 10 ETH wants to offer liquidity to a 50/50 ETH/USDT...
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