Half of all users who provide liquidity on the third version of the decentralized exchange Uniswap are seeing lower returns than they would have if they simply held tokens in their own wallet, a new study claims.
According to the study, the negative returns for users are due to the trading fee income generated by the protocols being smaller than the so-called impermanent losses, or losses that are incurred when your funds are still in a liquidity pool, as a result of how automated market makers
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