Ferro Protocol
  • Ferro Protocol
  • Getting Started
    • Tokens on Ferro
    • Bridging Funds to Cronos
    • Connecting a Wallet
  • Litepaper
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    • Whitepaper
      • Protocol Overview
      • Key Functionalities
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    • Get Involved
  • User Guides
    • Ferro Swap
      • Swap Tokens
    • Ferro Pools
      • Our Partners
      • Provide Liquidity
      • Remove Liquidity
      • Stake/Unstake Liquidity
      • Claim $FER Rewards from Staked LP
    • Ferro Stake
      • Stake $FER for $xFER
      • Unstake $xFER for $FER
      • Lock $xFER into Vaults
      • Claim $FER Rewards from Locked $xFER
    • Pool Boost
      • Get Boost Power
        • 1. Stake xFER into Vaults
        • 2.Stake Cronos Cruisers NFT (Optional)
        • 3. Unstake/Change NFTs
      • Boost Liquidity Pools
      • Change Pool Selection
      • Pool Boost Calculator
  • Support & Help
    • FAQ
    • Troubleshooting
  • Fundamentals
    • The Ferro Team
    • Cronos Labs Incubation
    • What Is an AMM Protocol
    • What Is Impermanent Loss
    • Team Wallets
    • Token Supported
    • Smart Contracts
    • Security
    • Risk Disclosures
  • Developer Resources
    • GitHub
    • SDKs
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  1. Fundamentals

What Is Impermanent Loss

PreviousWhat Is an AMM ProtocolNextTeam Wallets

Last updated 2 years ago

Impermanent Loss is the difference between the value between just holding the tokens (HODL value) in your wallet and withdrawing your liquidity and receiving the tokens back. This is a potential risk for users who intend to become Liquidity Providers (LP).

Similar to other exchanges, Ferro Protocol provides transaction fees and farming rewards as the mitigation of Impermanent Loss and compensation for the risk experienced by Liquidity Providers.

If you want to learn more:

  • Check out this in-depth on Impermanent Loss

  • Read up on the adopted by Ferro for trading

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Hybrid Invariant Model
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