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Top AMMs to Pool Your Tokens with Minimal/No IL Risks
By KaChinging  •  July 21, 2021
Impermanent Loss (IL) has always been the biggest concern for all liquidity providers (LP) when providing liquidity. Nobody enjoys seeing their pooled token balance dwindled while the price moons. Unfortunately, if the pool uses the "X * Y = K" equation, it is unavoidable. So, in this post I discuss about what I think are some AMMs to consider LP-ing and how they deal with IL. I will be using "ape level", a scale of 1 to 5, to gauge the amount of effort required to monitor their pool assets. 1 being LPs have to always keep a lookout and 5 being LPs can sleep on it. 1. Balancer v2 An AMM protocol OG, Balancer is a pioneer of another AMM tech of varying pool weightage. Only at Balancer that you can find all sorts of pool weightage like 80/20, 20/20/20/20/20, 60/40 etc. Balancer recently released their version 2 which introduces a different pool architecture named vault....
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By KaChinging
Engineer, 90s Baby, Newbie Investor, INTP, Sandwich Generation, Live to Work not Work to Live, Singaporean KaChinging is about a young working adult venturing into the unfamiliar world of investing to alleviate the burdens of living expenses, reduce reliance on monthly salary and hopefully achieve financial independence.
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