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Glossary/Impermanent Loss

Impermanent Loss

The loss liquidity providers can suffer when the price ratio of pooled tokens changes compared to simply holding them — a core risk of providing liquidity to AMMs.

When one pooled asset outperforms the other, arbitrage rebalances the pool and leaves the LP holding more of the weaker asset. The "loss" is relative to holding and only becomes permanent on withdrawal.

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What is a liquidity pool? →

DeFi Explained: What is an AMM? →

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Blockchain Bitcoin Ethereum Stellar Smart Contract Decentralized Application (DApp)Decentralized Finance (DeFi)Web3

What Is Impermanent Loss? | EduNode Glossary

The loss liquidity providers can suffer when the price ratio of pooled tokens changes compared to simply holding them — a core risk of providing liquidity to AMMs.

EduNode

Learn blockchain development and practical IT skills

EduNode is an educational platform for becoming a blockchain developer. Hands-on courses cover Stellar, Web3, Soroban smart contracts, Ethereum, and Hyperledger, alongside self-paced masterclasses in Python, SQL, JavaScript, AI workflow automation, cybersecurity, networking, Docker, Git, data analysis, and Web3 fundamentals.

What is EduNode?

A learning platform that combines written lessons, interactive coding challenges, quizzes, and verifiable certificates. It is built for beginners who want practical, project-based paths into blockchain and IT careers.

What can you learn?

Masterclasses — fifteen paths, 150 lessons: Python, SQL, JavaScript, Git, AI automation, cybersecurity, networking, Docker, data analysis, IT support, stablecoins, Ethereum, Stellar, zero-knowledge proofs, and crypto fundamentals
Blockchain courses — Stellar, Web3, Soroban, Ethereum, and Hyperledger fundamentals
Guides and articles — wallets, stablecoins, smart contract security, DeFi, tokenization, and developer roadmaps
Web3 glossary — plain-language definitions, each on its own page

How much is free?

The first two lessons of every masterclass (20%) are free without an account. The remaining lessons and final projects are included with a Pro membership.

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