Impairment loss in Crypto happens when a liquidty provided see a temporary loss in the value of his supplied asset. He may at first generate a LP token from two coins amount to $500 ( $250 each ) . When there is a drop or a rise in the price of one of the token, his total worth will be affected. What is the best way to overcome such lose. Withdrawing when the LP is high leads to impairment loss because you will have lesser value of the coin that rose compared to what you supplied initially .
How best can one minimize impairment loss ?
How best can one minimize impairment loss ?