What is Impermanent Loss?
explained by the participants of our 100 Days of Code program!
Hey there friends!
A LOT of hustle is there right now!. With the 50 days over and the participants now building their own dapps, it’s all so exciting! ⚡
Sooo, we thought why not share what’s new this week in the cohort with y’all!
Have you ever provided liquidity to a liquidity pool just to realize that some of your coins have gone missing?🤔
We too tried finding an answer to that and came to a conclusion that this happens because of ‘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.
Thus, in this week’s task, we asked participants to explain ‘Impermanent Loss’ in DeFi in a form of a presentation, video or however, they may like.
The explanations they have come up with are simply AMAZING! And the exciting part is, we also rewarded the best explanations! I know, I know you want to know who won, but first, let’s learn about impermanent loss through all these wonderful presentations!
So without further ado, let me present some of the many amazing explanations-
- Ahmed Gaziyani
2. Vikram Barandwal
Watch the whole presentation here.
3. Mayur R S
Learn more here.
4. Prashanth R
“When you invest in Stock Market, in multiple stocks, the price fluctuates. There may be an increase in value for few, and decrease for others. This is an impermanent loss. At the time of withdrawal of funds, the total value might be less than the value of investment. This becomes a permanent loss.”
Read the full piece here.
5. Rahat Khan
Watch the whole presentation here.
I am sure you may have mastered ‘impermanent loss’ after going through all these explanations! 😜
So whose explanation you liked the best or can you explain it in a better way? 😉
We really liked all the explanations, but Ahmed won the game followed by Vikram! And they got USD 60 (approx 4500 INR) worth of ZIL tokens! WOW!🔥
Our participants are really enjoying the 100 days of code program and learning blockchain development. This can be seen by the amount of effort and hard work they are putting in. From tweeting about their progress every day to doing their assignments with utter diligence, it’s countless! 👏
Before parting, a quick update on the participant’s progress. The ideas they are going to build as their final project are finalized. They are now working on the technical architecture & business model. These ideas will be pitched on their Demo Day in July. Till then keep following their progress on our forums!
If you too are interested in learning blockchain development and wish to get mastered from “the very best”, then do join us for our next cohort of 100 Days of Code! 🚀🚀
And don’t forget to be a part of our community!
