What are ways to hedge an impermanent loss in DeFi?
Asked 4 years ago
Afternoon guys. Looking for ways to hedge impermanent losses. Thank you kindly
Anderson Ezie
Monday, January 31, 2022
The most common way to hedge against impermanent loss currently is through LP tokens paid by the native DeFi platform, and through fees distributed by the native platform to LP providers. Most DeFi platforms pay LP providers some fees ranging from 0.30% to 0.50%. Another way to hedge against impermanent loss is to use part of te funds at your disposal to provide liquidity for stable assets alone. These assets such as BUSD/FRAX, USDC/USDT, MIM/USDC, and UST/USDT have lower risks of impermanent loss. Some protocols like Balancer offer pools with varying ratios which also reduces the impact of impermanent loss.
Please follow our Community Guidelines
Related Articles

Perpetual Contracts in Crypto: All You Need To Know!
Filip Dimkovski
August 1, 2022

The Evolution of BNB Chain
Marcel Deer
August 22, 2022

The Role of DAOs in Decentralizing Venture Capital
Filip Dimkovski
January 8, 2023
Related Posts
Filip Dimkovski
Akropolis Explained: Features, Pros & Cons, and More
Anderson Ezie
How Ethereum is Changing the Crypto Narrative
Thasni Maya
Top Ethereum Alternatives in 2022
Marcel Deer
6 Best Crypto Lending Platforms in 2022
Can't find what you're looking for?