Liquidity Provider Fundamentals: Formulas Summary (Part 10)
Manage eGHST-DAI liquidity on ghostDAO. Understand LP valuation, optimal contribution, price impact, constant product, impermanent loss, and DEX fees with key formulas.
Manage eGHST-DAI liquidity on ghostDAO. Understand LP valuation, optimal contribution, price impact, constant product, impermanent loss, and DEX fees with key formulas.
We now arrive at a crucial concept: how DEX trading fees compensate for Impermanent Loss (IL). While most sources vaguely mention this relationship, few explain the exact mechanics. Let’s revisit…
Understand impermanent loss (IL) in DEXs: How price changes impact LP returns. Learn the math behind IL & why fees matter.