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Difference between revisions of "Impermanent loss"
→Calculate impermanent loss
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== Calculate impermanent loss == | == Calculate impermanent loss == | ||
The following formula | The following formula<ref>https://medium.com/auditless/how-to-calculate-impermanent-loss-full-derivation-803e8b2497b7</ref> calculates impermanent loss for a 2 tokens pool with 50/50 weightings (ex. Uniswap pools), where k reprents the price change:<br> | ||
[[File:IL formula.png|250px|Impermanent loss formula]]<br> | [[File:IL formula.png|250px|Impermanent loss formula]]<br> | ||
As you can see, IL gets greater as the price moves, especially on the downside. | As you can see, IL gets greater as the price moves, especially on the downside. | ||