This video uses a specific liquidity pool example to demonstrate Asymmetrical vs Symmetrical Deposits Impermanent Loss and Impermanent Loss Protection and withdrawing Asymmetrically vs Symmetrically. While the numbers are close and a good guide to understand the concept, they are not 100% accurate, actual numbers would be different. This video is aimed a newer, less technical viewers wanted to understand the concepts and not designed to overly complex.
To generate exact numbers is very complex and would be confusing to newer views trying to get the basic concepts.
See links below to find out more detailed information.
Thanks to Juggernaut for the introduction video!
Key takeaways
1. Asymmetrically and Symmetrically additions end up the same in the pool and are recorded the same with respect to ILP start position.
2. As a liquidity Provider, you have both asset exposure regardless how you enter the pool.
3. If you enter 2 BTC, Impermanent Loss Protection will not mean you are guaranteed to get 2 BTC as you exposed to both assets and the risk of Impermanent Loss.
Timeline
0:00 Introduction
1:07 Set up the example
1:45 Adding Symmetrically
2:04 Adding Asymmetrically
03:14 Position after adding
4:05 Adding Impermanent Loss
4:33 Holding vs LPing
5:31 Pool Ratio Change
6:53 Impermanent Loss Protection
8:14 Withdraw Symmetrically
8:40 Note about the video and the numbers
9:49 Withdraw Asymmetrically
10:38 Asymmetrical Recap
10:53 Summary
Links
[ Ссылка ]
[ Ссылка ]
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[ Ссылка ] - Cal new units from ILP Payout
[ Ссылка ] - Adding updated units. Note, this would also increase the overall pool depth.
[ Ссылка ] - ILP formula update.
Music
Vishnu - Patrick Patrikios
Average - Patrick Patrikios
Beside Me - Patrick Patrikios
Ocean View - Patrick Patrikios
Disclaimer:
THIS IS NOT FINANCIAL, TAX OR LEGAL ADVICE. DO YOUR OWN RESEARCH, TAKE RESPONSIBILITY FOR YOUR OWN FINANCES AND DECISIONS.
This is videos are starting point for your learning. They are not mean to be fully comprehensive or provide all the facts. You are encouraged to review other information and make your own decisions. While effort is made to make the content accurate – it may not be accurate or its accuracy may change over time. The information provided are opinions based on publicly available information.
#THORChain #THORview #Rune #MCCN #AsgardEx #THORSwap #'Liquidity Pools' #'Liquidity Provider'
