- This topic has 0 replies, 1 voice, and was last updated 6 months, 2 weeks ago by Dry-Hurry-7598.
- Saturday, May 14th, 2022 at 17:53 #273153Dry-Hurry-7598Participant
So I’ve been looking at putting my money into a liquidity pool, and I have read about impermanent loss.
Now usually the TVL in the pool is greater than the volume coming into the pool, so my share of the fee is like 0.3%. So if I put liquidity in this pool would the part of my liquidity that is actually used in the transaction (so that 0.3% share) be the only amount of money effected by impermanent loss. Or is the entire amount of money I put into the pool impacted by impermanent loss ?
If I put in $1000 worth of sol and Usdc, but only $300 is actually being used for the transaction as that’s my share of the pool, is that $300 the only thing effected by impermanent loss, or is the entire $1000 effected ?
If I’m way off please let me know cause It can be a little confusing sometimes
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