@quickflow
Impermanent loss occurs when the value of the assets in a liquidity pool changes relative to when they were initially deposited. For example, if a liquidity provider deposits equal amounts of ETH and USDC, and the price of ETH increases significantly, they will hold a lesser amount of ETH in the pool when compared to holding ETH outside of the pool. This "loss" is considered impermanent because if the price ratio returns to its original state, the provider could recover their losses. However, if the price disparity remains, the provider may experience a permanent loss of value relative to simply holding the tokens.
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