Glossary / DeFi
The relative loss LPs suffer when pool asset prices diverge, compared to simply holding the tokens outside the pool.
When you provide liquidity, the AMM rebalances your position as prices move. If one asset moons and the other stays flat, you end up with less of the winner than a passive holder would have.
IL is only "impermanent" if prices return to entry ratio. For volatile meme coin pools, IL can be significant. Fee income sometimes compensates, sometimes does not.
The fastest way to internalize a term is to see it live on a Solana token you know. Paste any mint below to run a public Launch Score.