Sources & further reading
These are primary sources, established data vendors, or canonical specifications we referenced or cross-checked while writing this page.
- DefiLlama — The industry-standard open-source aggregator for DeFi TVL and protocol metrics.
- Dune Analytics — Community-curated SQL dashboards over on-chain data.
- Rekt.news — Forensic post-mortems on DeFi exploits; often the first independent analysis.
- Aave — documentation — Canonical documentation for the Aave lending protocol.
Impermanent Loss Calculator
Calculate the impermanent loss on a 50/50 liquidity pool position. Enter the initial and current price of one token (relative to the other) to see the percentage loss compared to simply holding.
Results
Note: This does not include trading fees earned, which may offset or exceed the impermanent loss.
How Impermanent Loss Works
Impermanent loss occurs when the price ratio of tokens in a 50/50 liquidity pool changes. The AMM automatically rebalances your position, buying more of the depreciating token and selling the appreciating one. This means your pool position is always worth less than if you had simply held the tokens. The loss only becomes permanent when you withdraw from the pool.
A 2x price increase results in approximately 5.7% impermanent loss. A 5x increase results in about 25.5% loss. For stablecoin pairs, the price ratio stays near 1:1, so impermanent loss is negligible. This is why stablecoin pools on Curve are popular among risk-averse LPs.