📕Impermanent loss

Being a Liquidity Provider has the possible risk of Impermanent Loss (LP).

The difference between the value of the tokens you keep in your wallet (their HODL value) and the value of the tokens you get back when you remove your liquidity is known as impermanent loss. To offset this risk, exchanges like Ikki Finance offer transaction fees and agricultural incentives as well as the assistance of liquidity providers.