Example: Suppose an LP provides 50000 USDT liquidity on Ethereum. A user tries to make a cross-chain transfer of 10000 USDT from BSC to Ethereum. At the time of this transfer, the total USDT liquidity on BSC is significantly lower than that on Ethereum, and thus the bridge for this transfer is 1.001. If the LP’s liquidity is used to bridge this transfer, the LP will receive 10000 USDT on BSC but will send out 10010 USDT on Ethereum to the user. As a result, an impermanent loss of 10 USDT is incurred to the LP. In the long term, the impermanent loss may be recovered as users make transfers of reverse directions.