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Month: December 2025
Rabby Wallet Liquidity Pool Entry: Understanding Impermanent Loss, Pool Token Valuation, and Rabby’s Inability to Warn About IL
A user deposits 1 ETH and $2,000 USDC into an Uniswap v3 liquidity pool on Ethereum, receives LP tokens in return, and sets it aside to accumulate fees. Weeks later, ETH has risen to $3,000. The user checks their LP token balance in Rabby Wallet—still showing the same number of tokens—and assumes the position is …
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