UniHedge: The Best-Kept Secret for Uniswap LPs
If you’re a Uniswap LP, you’re probably leaving money on the table — or worse, losing it silently. @KiboProtocol UniHedge is the solution no one is talking about yet
First, let’s understand impermanent loss (IL). When you provide liquidity to Uniswap, you deposit two tokens in a ratio. If prices change significantly, you end up holding more of the lower-performing token. This loss vs just holding is called impermanent loss. It’s very real. I
Example: You LP ETH/USDC at $3,000 ETH. ETH pumps to $5,000. You now own less ETH than when you started (the AMM sold some as price rose). You would have been better off just holding ETH. That difference? Impermanent loss.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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