Hanzo ㊗️
Hanzo ㊗️|Sep 28, 2025 14:36
impermanent loss is why most lp strategies bleed over time example: > you deposit 1 btc + $100k usdc into a btc/usdc pool > btc doubles to $200k > when you withdraw, you don’t get 1 btc + $200k, instead you get 0.7 btc + $140k if you just held, you’d have $300k, but now you have $280k you “lost” $20k of upside this happens because the amm sells your btc as it goes up to keep the pool balanced you’re unknowingly shorting volatility every time you provide liquidity @yieldbasis fixes this by running a built-in leveraged hedge: > it borrows stablecoins to open a 2x long position on your assets > as prices move, it automatically rebalances > this cancels out the forced selling that creates impermanent loss result: your exposure stays the same as simply holding, but you still earn real yield from the pool sound like a gamechanger (for me)
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