got a few questions, any insight appreciated.
Does anyone here know how the APR % is determined for AMM pairs?
Lets say providing liquidity to a pair AAA/BBB is 16% APR.
Does this mean if i deposit $500 of AAA and $500 of BBB, i will be making 16% a year?
Is impermanent loss just simply the difference between this 16% APR and the gains i would have made if i instead just held the coins. So if i dont care about 100% profit/loss, can i just provide liquidity to guarantee 16% annual gains? Or am i misunderstanding something.
thank you
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