What Is Impermanent Loss, and How Can It Be Managed?

[kevin1]

Impermanent loss occurs when the value of deposited tokens in a liquidity pool diverges from holding them. Strategies like dynamic rebalancing, stablecoin pools, or using impermanent-loss-protected protocols can reduce exposure for DeFi LPs.

[kelson10]

Impermanent loss happens when token prices diverge — reducing liquidity provider returns.

[alex10]

Smart strategies like dynamic pools and hedging can reduce exposure to impermanent loss.