Valis’s implementation of Crypto Impermanent Loss in the Tockchain DLT, where Liquidity Provider may experience temporary value divergence in pooled Assets (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 Rewards. 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.
Impermanent Loss
Valis’s implementation of Crypto Impermanent Loss in the Tockchain DLT, where Liquidity Provider may experience temporary value divergence in pooled Assets (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 Rewards. 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.