The Dragon’s Guide to Impermanent Losses

What are “Impermanent Losses”?

Why does IL happen?

How to prevent IL?

Method One: Providing for Stable/Stable Pairs

  • USDC/USDT — 18%
  • DAI/USDC — 12%
  • DAI/USDT — 18%
  • MAI-DAI — 20%
  • MAI — USDT — 28%

Method Two: Providing for two assets you believe in long term

Method Three: Don’t LP! Stake & Stake Again

Wrapping Things Up

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