❗Risk Overview
Risk Overview Below is an overview of the types of risks that could occur within this yield opportunity:
Risk Overvew
Last updated
Risk Overview Below is an overview of the types of risks that could occur within this yield opportunity:
Risk Overvew
Last updated
Risk
Description
Asset Valuation
If utilizing a non-Stablecoin asset, for example, Bitcoin or ETH, the value of this asset will naturally change as the market actively trades it.
Asset Depegging
If a representative asset breaks its peg, you may lose value within this asset outside of any natural value change due to trading The rate between the stable assets will change which could make you subject to impermanent loss (see below)
Protocol Exploit
If liquidity pools are exploited and reserves are drained, you may be unable to recover any or a reduced amount of the assets you were entitled to.
Impermanent loss
If the rate between the assets remains equal, impermanent loss is virtually impossible. However, if the peg breaks, this could break the equal value between assets. In this case, impermanent loss would be possible like other AMM's for non-stable assets.