BestDapps
⚖️ Liquidity & DEX DeFi Core

Impermanent Loss & LP Simulator

Calculate exact impermanent loss (IL) for 50/50 and concentrated AMM liquidity pools (Uniswap, Sushiswap, PancakeSwap) when token prices diverge, and calculate how much trading fee APR is required to remain profitable.

Market Scenario:
$
$
$
$
$
%
days
Impermanent Loss Incurred
-2.02%
Impermanent Loss vs. Holding 50/50
Value if Simply HODLing: $6,250.00
Pool Value (Excl. Fees): $6,123.72
Impermanent Loss Dollar Drag: -$126.28
Trading Fees & Rewards Earned: +$197.26
Net Strategy Return (LP vs Initial): +$1,320.98 (+26.42%)
LP Outperformance vs HODL: +$70.98 (Profitable LP)
Fee generation offset the impermanent loss! Your position gained more value providing liquidity than if you had simply held the two tokens in your wallet.
📐 Mathematical Formula & Verification Client-Side · Zero Cost · Deterministic
Impermanent Loss = (2 * sqrt(Price_Ratio_k)) / (1 + Price_Ratio_k) - 1
📖 Masterclass Guide Available (10 Languages)
Learn the theory, math, and edge-cases behind this tool
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How It Works

Simulate impermanent loss and net LP profit across AMM price ratios with trading fee offsets.

BestDapps provides client-side, privacy-preserving calculators designed to give decentralized finance traders, yield farmers, and stakers accurate financial models without connecting a wallet or transmitting sensitive data.

Frequently Asked Questions

What causes Impermanent Loss?

Impermanent loss happens when the price ratio of deposited tokens changes compared to when you deposited them into an automated market maker (AMM). The larger the divergence, the greater the loss compared to simply holding the tokens in your wallet.

When is providing liquidity profitable despite IL?

Providing liquidity is profitable when accumulated swap fees and liquidity mining incentives exceed the calculated impermanent loss over your investment timeframe.

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