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DeFi AMM Risk Analysis Engine

Impermanent Loss & LP Yield Calculator

Model price divergence between token pairs in Uniswap, Curve, and PancakeSwap automated market maker (AMM) pools. Calculate if fee rewards offset volatility risk.

Pool Parameters

$10,000
+50%
0%
Leave at 0% for Stablecoins (USDT, USDC, DAI)
AMM Outcome Breakdown

Net Position Summary

Impermanent Loss
-2.02%
Value dragged vs HODL: -$253
Net vs HODL (incl. Fees)
+$688
LP Profitable vs HODL
HODL Strategy
$12,500
Fees Earned
+$940
Total LP Position
$13,188

Standard Impermanent Loss Reference Table

1.25x (25%)
-0.6%
1.50x (50%)
-2.0%
2.00x (100%)
-5.7%
3.00x (200%)
-13.4%
5.00x (400%)
-25.5%

What is Impermanent Loss and How Does It Occur?

Impermanent Loss happens in automated market maker (AMM) liquidity pools when the relative price of the pooled assets diverges from when they were deposited. Because the constant product formula (x * y = k) automatically rebalances the pool by selling the appreciating asset and buying the depreciating asset, the total USD value of your liquidity pool shares can be less than if you had simply held the individual tokens in your wallet.

When Does Impermanent Loss Become Permanent?

Impermanent loss is only "impermanent" as long as the tokens remain in the pool. If price ratios return to their initial deposit levels, the loss disappears. However, once you withdraw your liquidity shares, the loss is realized and becomes permanent.