Impermanent Loss in Providing Liquidity

[Golden9]

One of the ways to make money passively with your coins is by staking them in a staking pool to provide liquidity. You can make some losses when the gains you would gain from this action is less than what you would make if you had just held the tokens.

Impermanent Loss can be reversible if you receive a significant amount of trading fees to cover up for the loss.

You can also provide liquidity for coins with lower volatility like stablecoins instead.

 

[Suba]

I'm only staking on Solana and ADA, and I hope that the amount I have will increase, besides that I will get capital gains for the long term, if I stake on stablecoins then I will only get rewards from staking results, but will not get capital gains gains for the long term.