When farming, if the same amount of LP tokens staked become worth less in $ (e.g. Impermanent loss)…

Do you still earn as many farmed tokens a day as when the LP was equal to the initial $ amount if the apr/apy stays the same?

I’m most confused since I still own the same amount of LP, but instead of .00005 LP @ 25USDC-138.89DEGG worth $50, it is now .00005 LP @ 20USDC-166.67DEGG worth $40. And someone could get my amount of LP now for $10 less than I did.

I’m guessing the arbitrage has already been done? Are there any moves I can still make? Or is arbitrage made on price action quick during the moves and it’s too late?

Am I earning more, less, or the same amount of DEGG each day assuming unchanged rates?

Could my LP tokens go to $0? Would I still earn DEGG on the .00005 LP if it did go to $0?

Can my LP tokens gain value without arbitrage eating it causing impermanent loss?

Why would/should I hang on or leave in this moment or in the future? I’m wondering if my rewards will beat Impermanent loss. Is that usually the case?

I understand stable pairs are safer. Just trying to understand unstable pairs as well. Possibly even the arbitrage that caused my LP to lose value.

Looking for a better understanding

Any extra information is greatly appreciated. Thanks

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2 thoughts on “When farming, if the same amount of LP tokens staked become worth less in $ (e.g. Impermanent loss)…”

  1. Rates usually change but it’s dependent on the platform and how their rates work. Each one is different. None have like constant rates.

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