What do you mean by "imbalanced pool"? @QuipTalk

Asked 1059 days ago
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What do you mean by "imbalanced pool"?

asked 1059 days ago

1 Answers

An imbalanced pool refers to a liquidity pool that has an unequal distribution of assets. This could be due to a variety of factors, such as a pool with a low liquidity of two assets where one asset is priced higher than the other. For example, if Asset 1 has a market price of $3 per token and Asset 2 has a market price of $6 per token, but the pool in question has Asset 1 priced at $5 per token and Asset 2 is priced to market at $6 per token, this would be an example of an imbalanced pool. This unequal distribution can lead to a number of issues, such as an increase in slippage and a decrease in the overall liquidity of the pool. It can also lead to a decrease in the overall value of the pool, as the assets are not being priced optimally.
answered 1059 days ago
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Low liquidity farm with 2 assets. Let's say Asset 1 has a market price of $3 per token and Asset 2 has a market price of $6 per token. The pool in question has Asset 1 priced at $5 per token and Asset 2 is priced to market at $6 per token
answered 1059 days ago

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