Compare impermanent loss to estimated compound interest earned in Crystl Vaults!
What Is Impermanent Loss?
Impermanent Loss (IL) is one of the most commonly misunderstood concepts in DeFi. IL is not an actual loss, rather, it is a potential opportunity cost of holding tokens inside LP vs. holding those tokens outside of LP.
IL occurs due to token prices changing compared to the initial prices when a provider added liquidity. The behavior of IL is programmed into the design of all AMM protocols on decentralized exchanges. This is not something that can be avoided! However, IL can be minimized through the use of Crystl Finance auto-compounding Vaults!
Why is it called impermanent?
What is NOT impermanent loss?
Estimate Your Projected Earnings
The calculator below can be used to estimate (very roughly) & compare earnings over a given period to the impermanent loss incurred due to price changes of assets inside LP tokens. Please note that it is impossible to know exactly how token prices may change throughout a given period.
Crystl Finance Vaults purchase more LP tokens every single day by reinvesting your farming rewards. Because of this your actual returns may vary depending on the time spent compounding during periods when token prices are lower/higher, as well as the future prices at the end of the staking period. The calculator uses an average of your estimated minimum and maximum earnings throughout the period based on the provided parameters.
The calculator below should not be used for or interpreted for financial advice. It is not provided by Crystl Finance or any of it's team members for this purpose. You are fully responsible for your own investment decisions.