What problem does it solve?
It helps users understand how AMM liquidity positions can lose value relative to simply holding the underlying tokens when prices move, so they can make better liquidity-provision decisions.
Core Features & Use Cases
- Impermanent Loss calculation: Computes impermanent loss as a percentage and converts it into an estimated absolute dollar amount from the user’s position size.
- Scenario analysis: Produces a divergence table across common price-move levels (e.g., ±10% to ±400%) to show how outcomes scale with volatility.
- Fee break-even comparison: Estimates whether fee income is likely to offset impermanent loss over a chosen time horizon.
- Concentrated liquidity adjustments: Highlights how concentrated ranges amplify IL risk and how exiting a range changes the position exposure.
- Holding vs LP comparison: Side-by-side values make it clear what changes versus a buy-and-hold strategy.
Quick Start
Use the impermanent-loss-calculator skill with your token pair, entry prices, current (or target) prices, pool type, and position value to generate IL percentages, dollar impact, and a fee break-even estimate.