The short answer is there is reduced impermanent loss on DODO compared to other decentralized exchanges. Liquidity providers may see their token balances go down short-term, but such losses are less severe than other AMM platforms, most notably Uniswap.
DODO is a decentralized exchange and on-chain liquidity provider built for long-term success, and our backtests on BTC price data from April 2018 to April 2020 indicate that liquidity providers that stick to DODO are able to make 80% in net gains.
The long answer is that the kind of impermanent loss (we would prefer calling it "asset re-balancing loss", as it is much more accurate and less generic) frequently seen on other AMM platforms is not present on DODO. In one of our earlier Medium articles, we talked about how there is "no [AMM] impermanent loss" on DODO, because DODO does not force liquidity providers to deposit tokens in pre-defined ratios and does not tamper with their asset allocations.
There is, however, market risk involved with liquidity provision on DODO. The biggest distinction between market risk and AMM "impermanent loss" (or asset re-balancing loss) is the fact that impermanent loss is always a loss and there is very little LPs can do to address it if it is present. In contrast, market risk is not always manifested in losses. LPs could gain profits if the asset prices went up.