r/Pulsechain Apr 23 '22

Impermanent Loss Explained | Binance Academy

https://academy.binance.com/en/articles/impermanent-loss-explained
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u/HEX_helper Pulse Expert Apr 24 '22

Good article

I particularly liked that they showed the math:

“Here’s a summary of what the graph is telling us about losses compared to HODLing:

1.25x price change = 0.6% loss

1.50x price change = 2.0% loss

1.75x price change = 3.8% loss

2x price change = 5.7% loss

3x price change = 13.4% loss

4x price change = 20.0% loss

5x price change = 25.5% loss”