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That is true up to a point, however with the "passive" aspect you get exposed to "impermanent loss", which is a loss in value due to the relative price fluctuat
by is0tope 5y ago
That is true up to a point, however with the "passive" aspect you get exposed to "impermanent loss", which is a loss in value due to the relative price fluctuations between the two assets in the AMM (https://www.machow.ski/posts/an_introduction_to_automated_market_makers/#impermanent-loss https://www.machow.ski/posts/an_introduction_to_automated_ma...). As in most things in finance, TNSTAAFL.
- vmception 5y agoMost things aren't that volatile, especially in tradfi Range liquidity and liquidity pool optimizers reduce, eliminate, or make it profitable despite IL, even in volatile environments All I’m seeing is that tradfi capital markets would benefit more and more