Calculate if LP farming is profitable vs just holding your tokens
Impermanent Loss
-2.02%
-$20.20
Fees Earned
+$41.10
from 50% APY
Net Return
+$20.89
+2.09%
Final LP Value
$1020.89
vs $1250.00 HODL
HODL is BETTER than LP by $229.11
Impermanent loss is the difference between holding tokens in a liquidity pool vs simply holding them. It occurs when token prices diverge from your entry point.
Yes. If price changes are large enough, IL can exceed your fee earnings. Use this calculator to check if a pool's APY is high enough to offset potential IL.
Use stable pairs (USDC-USDT), correlated pairs (mSOL-SOL), or concentrated liquidity with tight ranges. Higher APY pools can also offset IL with more fee earnings.