is it worth to be a LP? how to LP properly?
Here’s a summary of what the graph is telling us about losses compared to HODLing:
1.25x price change = 0.6% loss
1.50x price change = 2.0% loss
1.75x price change = 3.8% loss
2x price change = 5.7% loss
3x price change = 13.4% loss
4x price change = 20.0% loss
5x price change = 25.5% loss
There’s something important you also need to understand. Impermanent loss happens no matter which direction the price changes. The only thing impermanent loss cares about is the price ratio relative to the time of deposit
submitted by /u/Puzzleheaded-Soft435
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