now doesn’t reflect the market price. Other traders will buy ETH at a discounted rate until the equilibrium is restored.
After arbitrage, a liquidity provider may end up with a greater amount of UDSC and slightly less ETH. Impairment loss is the difference between the trader's new balance and what they would have had if they had just held on to their old balance. The loss is realized when a trader withdraws the liquidity from the pool.One way to prevent impermanent loss is to use stablecoins, such as USDC and DAI, or wrapped versions of the same assets like
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