Impermanent Loss
German: Impermanent Loss
The shortfall of a liquidity position against simply holding the same assets, caused by the pool rebalancing against price moves; the more precise measure is loss-versus-rebalancing.
Why people look this up
Readers who have seen an APY figure and want to know why realised returns fall short of it.
Auf Deutsch
Impermanent Loss — Die Mindererfüllung einer Liquiditätsposition gegenüber dem bloßen Halten derselben Vermögenswerte, verursacht durch die Umschichtung des Pools gegen die Kursbewegung; präziser erfasst wird sie als Loss-versus-Rebalancing.
Related terms
Looking for how this maps to its traditional-finance counterpart rather than a standalone definition? See the Term Bridge, which also flags where the obvious analogy is wrong.