The DeFi Trap Draining LP Wallets Silent

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Jun 4, 2026
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DeFi is robbing LPs in plain sight. Most liquidity providers think they're earning yield. They're not. They're bleeding out to impermanent loss and don't even know it. Here's how it works. You deposit ETH and USDC into a pool — 50/50 split. ETH pumps 80%. The AMM auto-rebalances — selling your ETH as it rises. You end up holding less ETH than when you started. The pool 'protected' you right into u…