Impermanent Loss, Tamed

The Boogeyman of DeFi Meets His Equal

When one pool asset increases faster than another, impermanent loss occurs. In such cases, you get a greater amount of the losing asset and a lesser amount of the winning asset.

STON.fi V2 minimizes impermanent loss in two ways:

· WCPI pools ensure limited exposure, thus limiting your losses.

· Single-sided LP prevents impermanent loss on that side of the pool.

Impermanent loss exists. However, it’s not inevitable anymore.