Impermanent Loss

Impermanent Loss

Valis’s implementation of
Crypto Impermanent Loss
in the
Tockchain DLT
, where
Liquidity Provider
may experience temporary value divergence in pooled
Asset
s (e.g.,
VUSD
and
QUBIC
) due to price changes during
Token
Swapping
or
Trading
. Liquidity providers can mitigate this through strategies like balanced pools or by holding for
VNET
from
Tock Reward
s.

Slippage
from trades causes liquidity pool rebalancing, contributing to impermanent loss over time, but they're distinct concepts: slippage is trade cost, while impermanent loss is a liquidity provider volatility loss.