impermanentloss

Understanding Impermanent Loss on STON.fi (Simple Explanation + Real Insight)

Many LPs focus on APR… but ignore the biggest hidden risk: impermanent loss (IL).

So what is it? 👇

Impermanent loss happens when the price of tokens in a pool changes compared to when you deposited them.
The more the price diverges, the more your position shifts often leaving you with less value than just holding.

Simple example:
You add liquidity to a GEMSTON/STON pool.
If STON pumps while GEMSTON stays flat:
→ The pool automatically sells some of your STON for GEMSTON
→ You end up with less STON than if you simply held

On STON.fi:
• Balanced pools reduce short-term volatility impact
• Fees (APR) can offset IL over time
• Stable or correlated pairs = lower IL risk
• Volatile pairs = higher risk, higher potential reward

Key insight:
High APR ≠ guaranteed profit
Your real return = fees earned impermanent loss

Smart LPs don’t just chase yield…
they understand the trade-off between risk and reward.@ston_fi

#STONfi #DeFi #Liquidity #ImpermanentLoss

IBIT$1.3BillionTradeWithoutPriceImpact#USCryptoMarketStructureBillFacesUncertainty