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RE: Impermanent Loss: The one topic every crypto website somehow explains incorrectly.

in LeoFinance3 years ago

I laughed the first time I saw the term "impermanent loss" used with respect to AMM (and I haven't changed my opinion since).

One of the interesting things about financial analysis is how easy it is to confuse people with bad financial models.

And I'm frequently not even sure when someone is intentionally being deceptive to profit from it and when they're just making fundamental mistakes, then propagating those flawed ideas to others (more often than not, I think it's the latter). Perhaps the standout example of this in our lifetimes was the flawed analysis of collateralized debt obligations (CDOs). I remember reading with sheer disbelief how the creators thought they could make bad debt into good debt just by dividing it up differing qualities of bad debt and diversifying it across geographic locations.

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so true, the next toxic papers are in the line "Commercial Mortgage-Backed Securities".

Same as 2008 with the difference it is about commercial loans :)

With pandemic it can be interesting :)