Juan Pellicer
DeFi News
Concentrated Liquidity Increases Risk of Impermanent Loss, Bancor and IntoTheBlock Found
On-Chain Markets Update by IntoTheBlock Uniswap v3’s concentrated liquidity improved capital efficiency, but also amplified the risks of impermanent loss. Here is the breakdown of the profitability of liquidity providers and how it could potentially be improved. Recently an interesting paper was published by the Bancor team related to impermanent loss when providing liquidity on…