On March 7, Lava, a decentralized lending market platform, announced its official launch. The platform’s infrastructure will support automated market makers (AMMs) and provide solutions to mitigate impermanent loss and optimize liquidity across various blockchain networks.
Impermanent loss, which can occur when users participate in yield farming by depositing tokens in liquidity pools, has been a major challenge for decentralized exchanges.
According to John Lo, managing partner of digital assets at Recharge Capital, this issue has caused a reluctance among institutional investors to enter the DeFi space.
However, by addressing impermanent loss, Lava hopes to attract more traditional investors and unlock new possibilities for DeFi protocols.
