Understanding Risks

Impermanent Loss:

• Liquidity provision carries IL risk
• More severe in volatile pairs
• Mitigated by emissions and fees over time
• Use stable pairs for lower IL

Smart Contract Risk:

• All DeFi carries contract risk
• Dexlyn contracts should be audited
• Never invest more than you can lose
• Diversify across protocols

Lock Duration Risk:

• Tokens locked for years are illiquid
• Choose durations you’re comfortable with
• Can’t unlock early even in emergencies
• Start with shorter locks to test

Voting Risk:

• Voting for low-liquidity pools might yield little
• Vote resets when merging/splitting/transferring
• Cost 1 DXLYN to update votes
• Choose votes carefully each epoch