Product Docs
  • Jumbo Exchange
  • Basics
    • AMM (Automated Market Maker) and Decentralized Exchanges
    • Problems That Need Solving
    • Main Features of Jumbo Exchange
    • Roadmap
  • Technicalities
    • Technical Side. Oracles and Impermanent Loss
    • Token Model
    • The Only DEX with Anti Money Laundering Measure
  • How To
    • How to Swap
    • How to Pool
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  • On-chain Oracle Time-Weighted Price
  • Impermanent Loss
  1. Technicalities

Technical Side. Oracles and Impermanent Loss

Oracles do oraclizing. Impermanent Loss - you should know about it!

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Last updated 3 years ago

On-chain Oracle Time-Weighted Price

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.

Impermanent Loss

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outweigh the other causing liquidity providers to lose a certain amount of this asset if the liquidity is withdrawn.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.

https://medium.com/coinmonks/understanding-impermanent-loss-9ac6795e5baa