Logical paradox ?
The logic I don't understand is that if the ratio would completely restore and both coins go back to their original price, it should give me in the end more of both coins and profit due to the generated fees. However, if I were to provide a new pair for the same coins at the current prices and the price drifts all the way to what they used to be, that would mean I get hit again with a similar impermanent loss ?
Yes, I think you would get hit with a similar impermanent loss in the second scenario.
Think of it like a sports game starting at 0-0 with both teams evenly matched. You place an equal amount of wager on both teams. As one teams starts losing, you automaticcally start selling some "shares" you have on the winning team to place on the losing team (accumulating shares of the losing team at good odds or prices). if the losing team makes a comeback to tie the game then you would have made a profit because you would have gotten more "shares" of the losing team at good prices while they were losing, while at the same time selling shares of the winning team while they were winning.
In your sccond scenario a comeback hasn't occured yet. At least that's the way I look at it. I could be totally off with my analogy though (lol).
RE: Providing Liquidity on Uniswap | 1 Year Later