Understanding Impermanent Loss (IL) on QuickSwap’s V3 ‘Concentrated Liquidity’ Model

QuickSwap Official
2 min readOct 31, 2022

What is impermanent loss (IL)? Can you prevent IL on QuickSwap’s V3? The IL topic gets a bit more complicated when discussing the concentrated liquidity model on QuickSwap’s V3. But we’re here to help you understand how it works and hopefully figure out what you can do to avoid IL.

What is QuickSwap V3?

We introduced our V3 ‘concentrated liquidity’ model in June 2022. QuickSwap’s V3 allows liquidity providers to allocate capital at specific price ranges for each trading pair. As long as the price of the pair remains within the range, the liquidity provider receives rewards proportional to the volume and liquidity that they allocated.

To understand how the V3 model works on QuickSwap, please read QuickSwap’s V3 guide.

Read the full article on our official blog here: https://blog.quickswap.exchange/posts/understanding-impermanent-loss-on-quickswaps-v3

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