Thread by @lcx

Due to the volatility of #crypto prices, impermanent losses are unavoidable. However, you can still avoid them.

Let’s find out how?

Thread 🧵

#Stablecoins are the best way to guard against impermanent losses. In addition to their low volatility, stablecoins offer low arbitrage opportunities, thus reducing the risks.

Avoid Volatile LPs and Pairs: Pick pairs with a low volatility history instead of #cryptos that have an unstable or volatile history.

The #cryptocurrency market is highly volatile. Therefore, it is nothing unusual if deposited assets increase or decrease in value. It is crucial, however, for LPs to know when to withdraw their cryptocurrency before the price diverges too far from the initial value.

#DeFi does not exclusively offer liquidity through two-token liquidity pools, it also includes single token staking pools; since no ratio balancing is performed between two assets, there is no Impermanent Loss in such a pool.

Everything you need to know about Impermanent loss is here👇
lcx.com/everything-you…