Update 30 August 2020: this article originally used the term “impermanent loss” to describe the losses liquidity providers experience due to price divergence. The word “impermanent” was chosen because the loss due to price divergence may be reversed if the price divergence is also reversed. However, the use of this…

Update 30 August 2020: this article originally used the term “impermanent loss” to describe the losses liquidity providers experience due to price divergence. The word “impermanent” was chosen because the loss due to price divergence may be reversed if the price divergence is also reversed. However, the use of this…

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