TipMeACoffee

#hypothetical
mahmud552
@mahmud552 in Status·2 years ago

Let's look at a #hypothetical situation to see how impermanent/temporary loss occurs. #Suppose a liquidity provider with 10 ETH wants to offer liquidity to a 50/50 ETH/USDT pool

opan555
@opan555 in Status·2 years ago

While Tesla stock has roughly halved since then, Munger's #hypothetical #position would still be worth

kangkung
@kangkung in Status·2 years ago

On the other hand, all of the #probability density to the right of that line represents #hypothetical portfolios that outperformed the #market.

kangkung
@kangkung in Status·2 years ago

All of the probability density to the left of that vertical line represent #hypothetical portfolios that underperformed the #market return.

kangkung
@kangkung in Status·2 years ago

The blog post then went on to construct #hypothetical portfolios and compare the returns across each scenario. Here is a #visual and #description: