Lixir Docs
  • Welcome to Lixir Finance
  • Lixir Finance
  • Introduction
  • Concentrated Liquidity
  • The Case for Lixir
  • Lixir Vaults
    • LV Tokens
    • Strategy
    • Rewards
    • Performance Fee
  • Farming
    • Boost
  • Lixir DAO
    • Introduction
    • LIX & veLIX
    • Lixir Improvement Proposals
      • Governance Process
        • Submission & Approval
        • Vote & Implementation
      • LIP Template
      • LIP Archive
    • Protocol Revenue
      • Rewards from Revenue
  • Resources
    • Flashpaper
    • Guides
      • Depositing liquidity
      • Staking LIX
    • Risks
      • AMM risk
      • Vault Risk
        • Impermanent Loss
        • Inactive Liquidity
    • Links
    • Security
      • Multisig
      • Audits
      • Bug Bounty
    • FAQ
    • DeFi Glossary
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  1. Resources

FAQ

An overview of the most asked questions

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Last updated 3 years ago

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Q: Why do I need Lixir to actively manage my liquidity?

A: The short answer is that concentrated liquidity provision through DEXs like Uniswap V3 can be more capital efficient than liquidity provision through CFMMs if done right, which means liquidity providers enjoy higher APYs. The long answer can be found .

Q: Are Lixir's vaults audited?

A: Yes, we have been .

Q: Do I risk incurring Impermanent Loss?

A: Yes, you still risk incurring . Our strategy attempts to optimize profits, but in periods of high volatility the loss can still be significant. $LIX farming rewards are also intended to make up for any losses caused by this.

here
audited by CertiK and Haechi
Impermanent Loss