🎉 THE WAIT IS FINALLY OVER 🎉⚔️ Introducing Blade: the no impermanent loss (IL) AMM from @sushi_labs that we've been silently hard at work on for over a year https://t.co/HfzUHTEXo2 ...

10 Whys to understand Impermanent Loss (IL)Why IL? Because when you LP with 2 tokens, the AMM sells your better-performing token too early and gives you more of the weaker one when prices move.Why sell your strong token & buy the weak one? Because the pool needs to rebalance.Why rebalance? Because AMMs use XYK math (x * y = k), so the product of reserves must stay constant.Why XYK? Because it was elegant and fast to deploy at first, but flawed.Why flawed? Because it lets arbitrageurs capture profit.Why arbi ...

RT Quanto (@quanto)As of today, @quanto is enabling @RaydiumProtocol Liquidity Pool (LP) tokens as collateral.You can now use your LP tokens as collateral to trade across 500+ markets with full freedom.This unlocks a powerful new layer of capital efficiency:- Continue earning yield from your on-chain LP positions.- Actively trade the markets without missing opportunities.- Hedge against impermanent loss using your own LP tokens.By turning LP tokens into collateral, Quanto expands the universe of what’s trad ...

In this post we cover:🔹 Why AMMs rebalance into underperforming assets.🔹 Why fees don’t reliably cover IL.🔹 How borrowing, options, and “impermanent gain” change the equation.🔹 Why Ammalgam reframes IL as yield, not a silent drag.👉 Read more:https://t.co/FiCl8m5wXz ...

Impermanent Loss (IL) Analysis - Impermanent loss is characterized as a hidden tax on liquidity providers (LPs) [1] - Automated Market Makers (AMMs) potentially lead to suboptimal outcomes for LPs compared to simply holding assets [1] Potential Solutions - Exploration of hedging strategies for impermanent loss is suggested [1] - Investigation into fairer compensation mechanisms for LPs is proposed [1]

Core Insights - Curve Finance founder Michael Egorov proposed a new protocol called Yield Basis to provide a more direct income stream for CRV token holders through governance participation [1] - The proposal includes minting $60 million of Curve's crvUSD stablecoin to support bitcoin-focused liquidity pools, with a return of 35% to 65% for veCRV holders [2] Group 1: Proposal Details - Yield Basis aims to distribute sustainable returns to CRV holders who stake tokens for governance votes, moving beyond previous airdrop models [1] - The protocol will allocate $60 million in crvUSD stablecoin, with $30 million designated for three bitcoin pools, each capped at $10 million [2] - 25% of Yield Basis tokens will be reserved for the Curve ecosystem [2] Group 2: Target Audience and Benefits - The protocol is designed to attract institutional and professional traders by offering transparent and sustainable bitcoin yields [3] - Yield Basis aims to mitigate impermanent loss, a common issue in automated market makers, enhancing the appeal for liquidity providers [4] Group 3: Financial Context - The proposal comes amid financial challenges faced by Egorov, including significant liquidations tied to leveraged CRV purchases, totaling over $140 million in June 2024 [5] - Recent liquidation events have left Curve with $10 million in bad debt, highlighting the financial risks associated with the founder's trading strategies [5]

DeFi Challenges - Impermanent loss continues to be a problem in the DeFi space [1] Ammalgam's Solution - Ammalgam's architecture enables liquidity providers (LPs) to monetize volatility [1] Liquidity Sustainability - The shift described has implications for achieving sustainable liquidity [1]

Liquidity providers have long accepted impermanent loss as the hidden risk of AMMs.But what if that same risk could be turned into a source of yield instead of a drag on returns? Our latest blog introduces the idea of Impermanent Gain.A new way to frame LP risk and reward. 💡 ...

Risk Assessment - Impermanent loss 需要在提供流动性之前评估波动性和资产配置 [1] Investment Strategy - 行业建议在增加流动性之前进行风险评估和资产配置 [1]

The simplest way to explain what impermanent loss is:You deposited $ETH and $USDC.ETH went up.The AMM sold your ETH for USDC to stay “balanced.”ETH kept going up.Now you have more USDC, less ETH; and less money than if you just held.That gap = impermanent loss.#ImpermanentLoss ...