Liquidity Provision Calculator
Calculate LP returns, impermanent loss & farming rewards
Pool Details
Your Position
Price Change Scenario
Pool Stats & Rewards
Position Summary
Impermanent Loss
Income Analysis
LP vs HODL Comparison
Impermanent Loss Reference
| Price Change | 1.25x | 1.5x | 2x | 3x | 4x | 5x |
|---|---|---|---|---|---|---|
| Impermanent Loss | 0.6% | 2.0% | 5.7% | 13.4% | 20.0% | 25.5% |
| Break-even Fee APR needed | ~7% | ~24% | ~68% | ~160% | ~240% | ~306% |
* Assumes price change happens over 1 month. Break-even APR = IL × 12 months.
Pool Type Comparison
Uniswap V2 Style
- • Full range liquidity (0 to ∞)
- • Simple, set-and-forget
- • Lower capital efficiency
- • Predictable IL formula
- • 0.3% fee standard
Uniswap V3 Style
- • Concentrated liquidity
- • Higher capital efficiency
- • Requires active management
- • More IL if out of range
- • Multiple fee tiers
Curve Style
- • Optimized for stables
- • Very low slippage
- • Minimal IL for pegged assets
- • Lower fees (0.04%)
- • CRV rewards common
When to Use LP Calculator
Evaluate Pool Profitability
ETH/USDC pool with 50% APR looks great. But if ETH 2x's, you lose 5.7% to IL. Is the net return still worth it?
Compare LP vs HODL
Should you LP your tokens or just hold? Model different price scenarios to see when LP beats holding.
Size Your Position
How much to deposit? Calculate expected returns at different position sizes relative to pool TVL.
Stress Test Scenarios
What if your token dumps 50%? Or moons 5x? Model extreme scenarios before committing capital.
Optimize Holding Period
How long to LP? Calculate break-even point where fee income covers expected IL.
Evaluate Farm Rewards
New farm offering 200% APR? Calculate if rewards offset IL risk, especially if reward token might dump.
Frequently Asked Questions
Can IL become permanent?
Yes, if you withdraw when prices are different from entry. It's only "impermanent" if prices return. If they don't, you've locked in the loss.
Best pairs for low IL?
Stablecoin pairs (USDC/USDT), correlated assets (stETH/ETH), or tokens that move together. Avoid pairing volatile tokens with stables.
How often should I rebalance?
V2: Never needed. V3: When price exits your range. Gas costs matter - don't rebalance for small moves. Set wider ranges for less maintenance.
Are farming rewards worth the IL risk?
Do the math. 100% APR sounds great, but if the reward token dumps 80% and your LP pair diverges, you might end up negative.
V2 or V3 for beginners?
V2. Set and forget. V3 requires active management and understanding of price ranges. Start simple, graduate to V3 once comfortable.
What's a good fee APR?
Depends on IL risk. Stable pairs: 5-20% is solid. Volatile pairs: need 50%+ to offset potential IL. Check historical volume consistency.
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