Hey great to be here, I’m excited to keep using the BNB liquidity pool going forward.
I understand impermanent loss;
but what specifically happens when one side of my liquidity pool goes to 0.
For example At the start of the month I have
- 50% in 1inch ~100 and 50% ~ 1BNB
- The price of 1inch falls from 5$ to 0.5$ and our smart contract buys more 1inch with BNB
- this ‘fills up’ the 1inch side of my pool by selling BNB
- the balance of my BNB falls to 0 <<
What happens then ???
Do I have to then sell some of my 1inch to buy BNB realising a loss.