DeFi

Everyone should understand the pros and cons of providing liquidity (LPs)

One of the positive radical concepts made possible by decentralized finance

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Ooh yes, I’m so afraid of experimenting with it as there’s always a disclaimer that it’s risky

True. It’s certainly not easy to understand though. Need a layman’s terms explainer, or some good real world analogies

From all I've read, it's tough for the little guys out here because of Impermanent Loss....

I've been tinkering with the idea of an AI-AMM that dynamically adjusts LP fees to counteract impermanent loss. In a similar spirit to how CowSwap created a MEV-resistant Dex

Everyone should experience providing liquidity. And earning fees. And getting IL. 

Otherwise it’s too theoretical and too boring for most people. 

And yes - it is a radically new concept that simply wasn’t possible before

Hey fam, dm me please!!!!!!!!!!! IMPORTANT

But LP exists before decentralized finance

Artist and degen

https://drakula.app/user/tastegusto?invite=Jt6MLF

From a comment below:

**Cons:**

1. **Impermanent Loss:** LPs are exposed to impermanent loss, which can occur when the price of the assets they provide liquidity for changes significantly. This can result in LPs losing some of their initial investment when compared to simply holding the assets.

Do you have an easy way of explaining impermanent loss? 

I think it must be experienced…

Agree a 100%
Not understanding the concept of impermanent loss got me totally rekt during defi summer 
100 $degen

Quite complicated and you have to watch it, but it has massive upsides if you got the time for it.

This is something I’m going to look into soon

And if not, this is not the space for them..
50 $DEGEN