John A

Inflation in cryptocurrency networks arises from protocol-defined issuance and reward schemes that expand supply over time. New tokens enter circulation via block rewards, miners, or validators, creating a predictable, sometimes decelerating, growth path. Prices respond to demand, liquidity, and perceived…

Impermanent loss arises when liquidity providers deposit assets into a pool and the relative prices diverge from the deposit ratios. As trades occur, the pool rebalances to preserve the invariant, shifting the implied exchange rate. If prices revert, losses may…