Reduction in My pool balance

Hi there

I supplied liquidity a week ago and my BAL balance has increased from 8.1945 to 8.2947 as a payment for my service.

However my WETH balance has been reduced from 0.1043 to 0.0994

Can anyone explain why?

Thank you very much.

Hi Minaluisita,

That is for the impermanent loss, . If BAL tokens relative to ETH has worst performance, that the pools are rebalance for arbitragers that finally let the pool with the 80% /20% in dollars. If some of the assets moves relative to another the 80%/20% will change.

So you are rewarded with the comission but your exposure to this assets can change with the prices of the assets.