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Pool

What is V2 AMM?
What is V3 AMM?
What is concentrated liquidity?
How do I pick the fee tier?
How To Create A Concentrated Liquidity Pool
How To Create Positions Within Existing Concentrated Liquidity Pools
How To Remove Your Liquidity From A Concentrated Liquidity Pool
Managing Your Position in Concentrated Liquidity Pools
What are the considerations when I set the price range i.e. min and max price?
If the price moves out of range, what does that mean and what can I do?
What does the APR consist of?
How do I provide liquidity?
How can I earn on Sushi?
What is the difference between APR and APY?
My Farm Disappeared... Where Did It Go?
Why Can't I Withdraw Or Harvest From My Farm?
What Is Impermanent Loss?
How Does A Liquidity Pool Benefit xSUSHI Holders?
Manually Withdrawing From Farm Contracts
How To Calculate The Fees I've Earned?
Why Is My Pool Different Than The Market Rate?
I Added Liquidity & Got Arbitraged... What Happened?
Zap Mode FAQ
What Is Impermanent Loss?
What is V2 AMM?
What is V3 AMM?
What is concentrated liquidity?
How do I pick the fee tier?
How To Create A Concentrated Liquidity Pool
How To Create Positions Within Existing Concentrated Liquidity Pools
How To Remove Your Liquidity From A Concentrated Liquidity Pool
Managing Your Position in Concentrated Liquidity Pools
What are the considerations when I set the price range i.e. min and max price?
If the price moves out of range, what does that mean and what can I do?
What does the APR consist of?
How do I provide liquidity?
How can I earn on Sushi?
What is the difference between APR and APY?
My Farm Disappeared... Where Did It Go?
Why Can't I Withdraw Or Harvest From My Farm?
What Is Impermanent Loss?
How Does A Liquidity Pool Benefit xSUSHI Holders?
Manually Withdrawing From Farm Contracts
How To Calculate The Fees I've Earned?
Why Is My Pool Different Than The Market Rate?
I Added Liquidity & Got Arbitraged... What Happened?
Zap Mode FAQ

You may have seen the values of your tokens constantly change after providing liquidity into a pool. This is due to what is referred to as impermanent loss. The deposited assets in the pool are used by parties to facilitate their swaps; if one asset becomes more in demand than the other (which is reflected in the price it increases), you are left with the difference reflected in the liquidity pool and by extension your individual liquidity position. For example, if you added liquidity for USDC & ETH and the price of ETH increased, you would have more USDC and less ETH.

The reason this loss is impermanent is due to the fact that these assets can return to their original values at the point of time you deposited them. The final amount of tokens you receive is not cemented until you withdraw your liquidity from the pool!

Additional Resources

Below are some useful articles (as well as calculators) for projecting token changes based on shifting price metrics:

  • What is Impermanent Loss? by Finematics
  • Impermanent Loss Explained With Examples & Math by The Chain Bulletin
  • Impermanent Loss Calculator by dailydefi.org

increased, you would

You may have seen the values of your tokens constantly change after providing liquidity into a pool. This is due to what is referred to as impermanent loss. The deposited assets in the pool are used by parties to facilitate their swaps; if one asset becomes more in demand than the other (which is reflected in the price it increases), you are left with the difference reflected in the liquidity pool and by extension your individual liquidity position. For example, if you added liquidity for USDC & ETH and the price of ETH increased, you would have more USDC and less ETH.

The reason this loss is impermanent is due to the fact that these assets can return to their original values at the point of time you deposited them. The final amount of tokens you receive is not cemented until you withdraw your liquidity from the pool!

Additional Resources

Below are some useful articles (as well as calculators) for projecting token changes based on shifting price metrics:

  • What is Impermanent Loss? by Finematics
  • Impermanent Loss Explained With Examples & Math by The Chain Bulletin
  • Impermanent Loss Calculator by dailydefi.org

increased, you would