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🧠CoinSmarty Explanation
TL;DR

When you provide liquidity to a DEX, price changes can make your deposit worth less than if you'd just held the tokens.

Think of it like this: You and a friend each put $500 into a shared jar — you put in apples, they put in oranges. The jar always maintains a 50/50 balance. If apples suddenly become way more valuable, the jar auto-sells some apples for oranges to stay balanced. When you pull out your share, you have fewer apples than you started with. You still made money from fees people paid to use your jar, but you would've made MORE just holding your original apples.

🟡 Common in volatile pairs. Less risky with stablecoin pairs.
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