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🚨 IMPERMANENT LOSS in DeFi: THE TRAP THAT FEW UNDERSTAND 🚨
When your funds are in a liquidity pool, you will experience impermanent loss if the token ratio is unequal 📊
💡 ADVANCED STRATEGIES 2025:
• Stablecoins paired (USDC/USDT) = ZERO impermanent loss
• Stable yields of 5-15% on lending platforms
• Smart contract audits = MANDATORY
⚠️ REAL RISKS:
> Vulnerabilities in smart contracts where hackers exploit bugs, resulting in total loss of funds.
Yield farming is NOT "free money" 💸
The difference between a successful yield farmer and a bankrupt one lies in understanding that DEXs have refined their liquidity provision models, offering better capital efficiency and reduced risks, but for their own benefit, not yours.
Does your DeFi strategy include analysis of impermanent loss? 🤔