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 here.
A: Yes, you still risk incurring Impermanent Loss. 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.