If Investor A had left the initial 1 ETH and 100 DAI in a crypto wallet, the value of their assets at the new market price would be $300. The impermanent loss in this example can be calculated by subtracting $282.82 from $300 . The impermanent loss is $17.17.
Read moreHow is Uniswap impermanent loss calculated?
In constant product AMMs like Uniswap v2 and SushiSwap, impermanent loss is computed by comparing the relative change in portfolio value V compared to a “holding” portfolio V_H in response to a small change P’→α P in the price of the underlying . where the range factor r = √(tH/tL).
Read moreWhat is impermanent loss?
Impermanent loss (IL) is the risk that liquidity providers take in exchange for fees they earn in liquidity pools . If IL exceeds fees earned by a user when they withdraw, it means the user has suffered negative returns compared with simply holding their tokens outside the pool.
Read moreHow is LP APR calculated?
Calculating LP Reward APR
Read moreHow do you calculate cake LP?
1 LP token = 1 CAKE + 1 BNB . Someone trades 10 CAKE for 10 BNB. Someone else trades 10 BNB for 10 CAKE. The CAKE/BNB liquidity pool now has 10.017 CAKE and 10.017 BNB.
Read moreWhat is LP in staking?
LP Staking is the process by which you transfer your tokens to blockchain maintenance in exchange for Rewards in the form of new tokens . In simple words — you “deposit” your tokens and receive Rewards on top of them.
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