Beginnervideo
⏱️ 06 min
Beginner Level Progress83%
Pools vs Positions, Goals for Profit and Impermanent Loss
Understand impermanent loss, goals for profit and the difference between pools and positions
GeekLad Impermanent Loss Simulator
Check out this Impermanent Loss Simulator to better understand the concepts.
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What You'll Learn
The difference between a pool and a position, goals for profit in the DLMM, and what is divergent/impermanent loss and methods to overcome it
- 📗Understand pool vs position difference
- 📗Learn profit goals in DLMM
- 📗Understand impermanent loss
- 📗Learn methods to overcome IL
Key Insights
- 👉Pools and bins contain everyone's liquidity and cannot be destroyed
- 👉A position is your deposit into the pool
- 👉Can have as many positions in a pool as you like
Warning
- ‼️Creating pools and bin arrays cost money (rent) to create and cannot be refunded
- ‼️Position rent is refunded upon closing of the position
- ‼️Impermanent/Divergent Loss is guaranteed, you must overcome losses with fees