The DeFi space has exploded in the recent months. Yield Farming, Staking and Liquidity Mining have taken the space by storm, with participants earning by basically "locking" their tokens for a time. While generally great, these concepts have one downside: impermanent loss (IL). If you are farming/staking and the value of the underlying token changes significantly, even though you still get rewards, the value will far less than if you simply held your tokens.
Last modified 3mo ago
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