Impermanent loss calculator
CryptoKeyhole’s impermanent loss calculator shows what a 50/50 liquidity pool is worth against simply holding its two coins after their prices move, and whether the trading fees you expect make up the difference.
- Holding both
- —
- In the pool
- —
- Fees earned
- —
- Pool with fees against holding
- —
How it works
With r the ratio of the two coins’ price changes (one coin’s change divided by the other’s), the pool is worth 2√r ÷ (1 + r) of what holding both would be worth. The loss is one minus that.
The value of holding is the deposit split in half, each half moving with its coin. Fees are the yield you give, simple over the days held, on the pool’s value.
Questions
What is impermanent loss?
A pool that holds two coins in equal value keeps selling the one that rises and buying the one that falls, so when their prices move apart it ends up worth less than simply holding both. It is "impermanent" because it disappears if the prices return to where they started.
How is it worked out?
For a 50/50 constant-product pool, with r the change in the price of one coin against the other, the pool is worth 2√r ÷ (1 + r) of holding both. A coin doubling against the other costs about 5.7%; quadrupling, 20%.
Do fees make up for it?
Sometimes. The pool earns trading fees on its whole value; the calculator adds the fee yield you give over the days held and shows whether the pool comes out ahead of holding.
Does it apply to concentrated liquidity?
Not directly. Pools that concentrate liquidity in a price range earn more fees in the range and lose more to price moves; this calculator covers the full-range 50/50 case.
Worked out in your browser for a full-range 50/50 constant-product pool; no data is sent. Not advice.