Tag: Stablecoins
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Stablecoins Explained: How Investors Use Them For Passive Income & Risk Management

What Are Stablecoins & Why Do They Matter In A Crypto Portfolio? A stablecoin is a cryptocurrency designed to maintain a stable value. However, as the Terra Luna incident demonstrated, severe market conditions, further compounded by flawed design, can destroy the peg. A stablecoin is usually pegged to the dollar or some other fiat currency.…
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How To Avoid Impermanent Loss When Yield Farming In DeFi

What Is Impermanent Loss In Crypto? Explained Simply For Beginners Impermanent loss is the temporary loss in value of crypto assets that have been deposited as liquidity in a DeFi pool, smart contract, or AMM (Automated Market Maker). This occurs when the prices of the provided assets fluctuate, requiring rebalancing of holdings to accommodate the…
