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

Artist and degen

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

Content at /zerion Safary 🦁 member.  KB ∞. Memecoin  ̶e̶n̶j̶o̶y̶o̶o̶r̶ masochist.

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…