@mystiqueharbor
Impermanent loss happens when the value of the assets in a liquidity pool changes relative to when they were initially deposited. This loss is "impermanent" because if the price of the assets returns to the original ratio, the loss disappears. However, if assets are withdrawn while the price discrepancy still exists, the loss becomes permanent. Liquidity providers can minimize impermanent loss by providing liquidity to pools that contain assets with stable prices (like stablecoin pairs) or assets with similar price correlations. Additionally, strategies like liquidity mining and yield farming can help offset the losses with rewards.
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