Liquidity Provider Fundamentals: Impermanent Loss Without DEX Fees (Part 7)
Understand impermanent loss (IL) in DEXs: How price changes impact LP returns. Learn the math behind IL & why fees matter.
Understand impermanent loss (IL) in DEXs: How price changes impact LP returns. Learn the math behind IL & why fees matter.
Learn how trading fees impact the constant product (k) in DEXs. Discover why k changes with swaps but not liquidity adjustments.
Learn how 'k' works in DEX liquidity pools: constant in swaps, expands when adding liquidity, and shrinks when removing it.
Learn how liquidity provision affects token prices, including price impact derivations and simplified approximations for DeFi protocols like ghostDAO.
Learn how to optimize token allocation when joining a liquidity pool—exact formulas vs. quick approximations for efficient LP contributions in DeFi.
Learn how to calculate individual LP share value in DEXs with step-by-step formulas and real-world examples. Part 2 of our liquidity provider series.
Learn how to value liquidity provider (LP) positions in DEXs, including fee compounding, pool math, and real-world examples. Part 1 of a series.