What Is Impermanent Loss?
Impermanent loss (IL) happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit. THORChain offers impermanent loss protection of 1% a day.