Glossary
Impermanent loss
The shortfall a liquidity provider ends up with compared with simply holding the two assets, caused by the pool rebalancing as prices diverge. The name is optimistic: it becomes permanent when you withdraw.
See also
Liquidity poolA pot of two or more assets deposited by many people that traders swap against, with depositors earning a share of the fees.
Automated market makerA contract that quotes prices from the ratio of assets in a pool rather than matching orders. It is what lets a decentralised exchange trade without an order book.
Last checked 19 Oct 2026.