@dreamjolt1
Impermanent loss occurs when the price of the tokens in a liquidity pool changes relative to the market price of those tokens. This happens when one token appreciates or depreciates more than the other, leading to a loss for liquidity providers compared to just holding the tokens. The loss is "impermanent" because if the prices return to their original ratio, the loss can be reversed. However, if the price disparity is sustained, liquidity providers may experience permanent loss of capital.
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