AMM Impermanent Loss Calculator
Calculate the exact divergence loss of providing liquidity vs simply HODLing your underlying tokens.
Token A (e.g. ETH)
Token B (e.g. USDC)
Advertisement Space
What is Impermanent Loss?
When you provide liquidity to a 50/50 Automated Market Maker (AMM) pool like Uniswap, the smart contract mathematically balances your two tokens via the constant product formula x * y = k. If the price of one token rockets upwards mathematically compared to the other token, the pool automatically sells off your winning token to buy more of the trailing token.
Why is it called "Impermanent"?
The loss of capital (compared to just holding the tokens normally in your wallet) is only realized precisely when you withdraw your liquidity. If the prices return back to the exact ratio they were when you deposited, the loss vanishes—hence "impermanent".