#impermanentloss — Public Fediverse posts

6/6: Summary: Always Ask This Question

Before you LP:
"Do I actually want to hold these assets?"

If no → don't LP, regardless of APR
If yes → check correlation, then consider yield

Underlying Asset > APR
Every single time.

Next up: "V."

The foundation matters more than the rate.
Don't chase yield. Chase quality assets.

#CryptoAZ #DeFi #UnderlyingAsset #LiquidityProviding #ImpermanentLoss #LST #ETH #Uniswap #Onchain

Study: Three-Quarters of Defi’s Total Value Locked Earn 5% APY in Low-Risk Contracts - In the first quarter of 2024, approximately $43.8 billion, or 76% of the decentral... - https://news.bitcoin.com/study-three-quarters-of-defis-total-value-locked-earn-5-apy-in-low-risk-contracts/ #decentralizedfinance #totalvaluelocked #impermanentloss #defi #dexs #apy #pos

Study: Three-Quarters of Defi’s Total Value Locked Earn 5% APY in Low-Risk Contracts - In the first quarter of 2024, approximately $43.8 billion, or 76% of the decentral... - https://news.bitcoin.com/study-three-quarters-of-defis-total-value-locked-earn-5-apy-in-low-risk-contracts/ #decentralizedfinance #totalvaluelocked #impermanentloss #defi #dexs #apy #pos