Comprehensive cost-benefit analysis for your strategy of Impermanent Loss & LP ROI Auditor
Calculate the true ROI of providing liquidity to DeFi pools. See how price divergence between tokens impacts your total wealth vs just hodling.
Real-World Scenarios
If one token doubles and the other stays flat, you have 5.7% less money than if you just held both tokens.
In fast-rising markets, just holding tokens often outperforms pool rewards due to heavy IL.
Professional Strategy Insights
- Stablecoin pairs (USDT/USDC) have near-zero IL, making them the safest yield farms.
- Ensure pool trading fees (0.3%+) are high enough to offset the IL for your specific tokens.
Frequently Asked Questions
What is Impermanent Loss?
It is the difference in value between holding two assets in your wallet vs providing them as liquidity in a pool.
eCalcy Editorial Team
Verified ExpertFinance Research & Editorial Board, eCalcy
Financial Technology Specialists · RBI, SEBI & IRS Verified Calculators
Reviewed: April 2026
Every formula and editorial guide on eCalcy is reviewed by the eCalcy Editorial & Research Board and cross-referenced against RBI circulars, SEBI regulations, and the Income Tax Department guidelines. eCalcy is NOT a SEBI-registered investment advisor — all tools are educational planning aids only.
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