Beginnervideo
⏱️ 18 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
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