For those wondering what the loss really looks like

It's hard to understand impermanent loss without an example. With our MOON rising aggressively lately, allow me to explain what the impact has been for me as the #9 liquidity provider for ETH/MOON on SushiSwap.

The experience reminds me of "to the pain" in The Princess Bride for those that get the reference. I am fine with getting my butt kicked by impermanent loss because I am numb to such things thanks to 5 years of crypto thug life.

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https://preview.redd.it/s1hs6ltfjema1.png?245&format=png&auto=webp&s=ab7aef78bf4104f1c276c66c70a0f9ab06ca60e0

I currently have half of my MOON total in the SushiSwap ETH/MOON liquidity pool and since I started a week or so ago I am down over 5,000 of my MOON total in the pool. That doesn't mean I lost that many MOON. It means I could. But we don't withdraw. We don't sell (until our target price). We take the pain!

There is more to impermanent loss. This is meant to give you a sense of what the pain can look before you decide to jump in. The drop is because MOON went up in price - a LOT - while ETH has been declining.

So far the rewards have been a few hundred MOON, about 5 SUSHI. Fees that providers also get from the pool remain tiny/negligible.

I will keep r/cc posted as this story progresses and provide more of the transactional details next time. To my fellow liquidity providers - I salute you!