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  3. What are the losses that liquidity providers may experience when the exchange rates for token trading pairs on a DEX increase significantly? Over Wallet Quiz Answer Today

What are the losses that liquidity providers may experience when the exchange rates for token trading pairs on a DEX increase significantly? Over Wallet Quiz Answer Today

What are the losses that liquidity providers may experience when the exchange rates for token trading pairs on a DEX increase significantly? The Correct answer is ​Impermanent Loss (IL)

by Abisha

Updated Feb 03, 2024

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What are the losses that liquidity providers may experience when the exchange rates for token trading pairs on a DEX increase significantly? Over Wallet Quiz Answer Today

What are the losses that liquidity providers may experience when the exchange rates for token trading pairs on a DEX increase significantly?

A) Volatility Loss (VL)

B) Impermanent Loss (IL)

C) Momentary Loss (ML)

D) Temporary Loss (TL)

The Correct answer is Impermanent Loss (IL)

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Over Wallet Quiz Answer Today - FAQ

1. What are the losses that liquidity providers may experience when the exchange rates for token trading pairs on a DEX increase significantly?

The Correct answer is ​Impermanent Loss (IL)

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