Technical Side. Oracles and Impermanent Loss
Oracles do oraclizing. Impermanent Loss - you should know about it!
Last updated
Oracles do oraclizing. Impermanent Loss - you should know about it!
Last updated
Jumbo utilizes a set of on-chain oracles that monitor and accrue data from multiple sources that then are weighted against one another. In this vein, it enables the harnessing of the most accurate price value of an asset in the given timeframe.
Generally, impermanent loss pertains to the unevenness of the liquidity pool which causes a supply of one asset to disproportionately outweigh the other causing liquidity providers to lose a certain amount of this asset if the liquidity is withdrawn. Calculation of the impermanent loss is normally compared to the instance of holding an asset instead of providing liquidity.
