WHALE FACTOR
AnalysisFeaturedAIMarketCalendarCryptoToolsAPI
Newsletter

Latest Articles

Unmasking Satoshi Nakamoto: Why the Crypto World Remains Skeptical

Apr 8, 2026

Oil Ceasefire Ripples Through Bitcoin: Why $150 Crude Still Looms

Apr 8, 2026

BigBear.ai's Stock Plunge: What It Means for Investors in 2023

Apr 8, 2026

DoorDash and Wing Bring 20-Minute Drone Deliveries to Atlanta in 2024

Apr 8, 2026

Home Depot's Halfway to Halloween: A $50 Billion Market Opportunity?

Apr 8, 2026

Kura Sushi USA Sells Off Despite Beating Wall Street Expectations

Apr 8, 2026

Kura Sushi Shares Sink 16% Amid CFO Departure Despite Earnings Beat

Apr 8, 2026

AI's $100 Billion Spending Spree: Overreaction or Future-Proofing?

Apr 8, 2026

News & Analysis

  • Latest News
  • Featured
  • Analysis
  • Blog
  • AI x Crypto
  • Newsletter
  • RSS Feed

Learn & Compare

  • Crypto Glossary
  • Learn Guides
  • How to Buy
  • Compare Coins
  • Best Of
  • Developers

Prices & Tools

  • All Prices
  • Bitcoin Price
  • Ethereum Price
  • Market Overview
  • All Tools
  • Fear & Greed
  • Crypto Calendar

Company

  • About Us
  • Search
  • Privacy Policy
  • Terms of Service
  • Sitemap
  • HTML Sitemap
Whale Factor|

2026 Whale Factor. All rights reserved.

  1. Home
  2. /Glossary
  3. /Impermanent Loss
Back to Glossary
defi

Impermanent Loss

The difference between holding tokens in a liquidity pool versus just holding them in your wallet.

Definition

The difference between holding tokens in a liquidity pool versus just holding them in your wallet. When prices move significantly, LPs can end up with less value than if they'd done nothing. It's called 'impermanent' because it reverses if prices return to the original ratio.

Share this term

Learn More About Impermanent Loss

GuideDEX Guide: Decentralized ExchangesGuideYield Farming GuideBlogWhat Is Impermanent Loss in DeFi? (Explained Without the Math Headache)

Related Terms

Liquidity Pool

A pool of tokens locked in a smart contract that enables decentralized trading.

AMM (Automated Market Maker)

A type of decentralized exchange that uses math formulas instead of order books to price trades.

Yield Farming

Strategically moving capital between DeFi protocols to maximize returns.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

Explore More

Latest NewsCrypto NewsMarketsAnalysisFull Glossary

Stay ahead of the market

Get daily crypto analysis delivered to your inbox. No spam, unsubscribe anytime.