Hey !!

Warmachine
2 min readJun 30, 2023

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Impermanent loss and Bolide

Hello investors, today we shall discuss on of the best topic for an investor to consider 🤞.

Today we will talk about impermanent loss and how bolide deals with it.

What is impermanent loss?
Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.

For example, if the value of the assets in the pool decreases by 10%, but the value of the LP tokens only decreases by 5%, the user will have incurred a 5% impermanent loss.

It indicates how much more the value of your assets would be if you just HODL instead of providing liquidity. This gap is “impermanent” because it is possible to close the gap if the token price returns to the former price. It’s also important to note that impermanent loss does not take into account trading fees that investors earn for providing liquidity, which in many cases can negate any losses.

Bolide finance

Bolide is a next-generation decentralized yield aggregator that optimizes the deployment of its clients’ digital assets across multiple platforms, saving investors time and money and earning them market-leading yields.

WHY YOU SHOULD CHOOSE BOLIDE FINANCE TO TACKLE IMPERMANENT LOSS!!!

Bolide finance algorithmic strategies optimize asset deployment, reduces impermanent loss risks. All Assets are strategically allocated across multiple platforms, earning you market-leading yields!

With bolide finance you can earn with confidence and with an attractive profit.

http://bolide.fi/

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