Liquidity Pools, AMMs & Impermanent Loss.
Liquidity Pools, AMMs & Impermanent Loss Beginner DeFi • ~10 min read • Updated: 08/08/2025 TL;DR: AMMs replace order books with liquidity pools. Prices come from math, often the constant-product rule x·y = k. LPs earn swap fees but face impermanent loss (IL) when token prices diverge. You can reduce IL with stable pairs, dynamic-fee […]
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