₿ DeFi Impermanent Loss Calculator
Estimate the impermanent loss from providing liquidity to a DeFi AMM pool when asset prices change.
Enter 100 if the price doubled, -50 if it halved
Enter 0 if paired with a stablecoin
What Is Impermanent Loss in DeFi?
Impermanent loss (IL) occurs when you provide liquidity to an Automated Market Maker (AMM) pool like Uniswap or Curve. If the price of the tokens in the pool changes relative to when you deposited them, you end up with a different mix of tokens than you started with — and typically end up with less value than if you had simply held (HODLed) the original tokens.
When Impermanent Loss Becomes Real
The "impermanent" part means if prices return to the original ratio, the loss disappears. However, if you withdraw liquidity while prices are imbalanced, the loss becomes permanent. LP fees collected while providing liquidity can offset impermanent loss — whether they fully compensate depends on trading volume and the degree of price divergence.
Impermanent Loss by Price Change
| Price Change | IL |
|---|---|
| No change (1×) | 0% |
| 2× change (doubled or halved) | ~5.7% |
| 3× change | ~13.4% |
| 5× change | ~25.5% |
| 10× change | ~42.5% |
How to Minimize Impermanent Loss
- Provide liquidity to stable pairs (e.g., USDC/USDT) which have minimal price divergence
- Use concentrated liquidity pools (Uniswap v3) where you can set a price range, improving capital efficiency
- Choose pools with high trading volume to maximize fee income relative to IL risk
- Monitor your positions and withdraw before significant price divergence occurs