DeFi for Dummies - Understanding Impermanent Loss in DeFi Liquidity Mining

DeFi for Dummies - Understanding Impermanent Loss in DeFi Liquidity Mining

By ac2l | Altcoins that has potential | 13 Apr 2021


With the Binance Smart Chain drastically reducing the Gas Fees for participating in Decentralized Finance - Liquidity Swap & Liquidity Pool participation for retail investors, Liquidity mining has attracted massive swarms of retail investors to the BEP-20 ecosystem of dApps like Pancake Swap Finance & BurgerSwap Finance which are enjoying similar if not more success than the likes of their Ethereum counterparts Uniswap & co.

One of the most complex topics in DeFi Liquidity Mining is understanding the Impermanent loss.

In my recent episode 24 on my YouTube channel focussed on simplifying Crypto & Similar topics for people, I have taken a stab at explaining Impermanent Loss with a Fruit Market example.

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I have also explained what the craze is all about with respect to Decentralized Finance & what it means to become a Liquidity provider even if you have never heard about the term DeFi before. 

If you have been thinking about becoming a Liquidity provider or have trouble understanding Impermanent loss before, then please check the video below for a Defi For Dummies version of the content.

 

My Other Crypto Videos you may be interested in

UK Cashback (Effectively utilizing cashback in UK using Quidco)
Crypto Cashback VISA Card (How much can you earn with a Cashback Crypto VISA Card)
My top 5 Crypto Tips(My top 5 crypto investing tips for beginners)
GME & Crypto Ban (Gamestop story explained in an interesting way & Proposed India Crypto Ban)
IR35 Explained with Free Calculator (IR35 Calculation in UK Explained with Salary Calculator)

My Crypto Referral Links

Coinbase (Easiest CEX for buying crypto with USD)
Binance(For buying BEP-20 BNB coins & transferring to Pancake Swap)
Bitrue(good interest rates with the ability to withdraw crypto quickly)
Crypto.com (Quickly Buy Crypto & Stake CRO to get Cashback VISA Crypto Card)
WaxirX(Top Indian Crypto Exchange owned & managed by Binance)

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ac2l
ac2l

Youtuber & Blogger - Anand Chennai2London


Altcoins that has potential
Altcoins that has potential

In my EP03 in Crypto video series of my Youtube Channel, I did a demo of an Indian Crypto exchange called WazirX and suggested to buy their Own Crypto coin - WRX. That video - https://youtu.be/n0qS7DwqtTM - was published on 28-Sep-2021 when WRX was roughly 0.07$ . Today WRX touched $ 5.26 before settling down to 4 $ now. That is roughly 58 times or 5800% growth in 6 months.

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