RE: Cub on a tear; tear for the bear.

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RE: Cub on a tear; tear for the bear.

shmoogleosukami in LeoFinance • 5 years ago

I find it hard to understand when you lock in 'impermanent loss' like I just withdrew a bunch of liquidity on Cub DeFi and I'm wondering if that 'loss' gets locked in when you withdraw liquidity etc. Honestly I canb't really tell cause as far as I'm concerned the value of what I put in is largely the same as what I've taken out in $ terms anyways.

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5 years ago in LeoFinance by shmoogleosukami

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edicted 5 years ago

It's really a grievous mistake to consider it a loss at all.
It's all dollar cost averaging.
One asset goes down, you're buying it.
One asset goes up, you're selling it.
There is no loss, it's just a less risky gamble.

Think about it like this:
Would you tell someone they lost money when Bitcoin went x2 because they didn't trade on x100 leverage?
Therefore everyone should trade on margin because you can make more money?
It's the exact same thing with impermanent losses.
They don't exist: it's just DCA (IE less risky & lower volatility).

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