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See how much value you might give up by providing liquidity instead of just holding the tokens.
Last reviewed by FinSync LLC
Who this is for
DeFi users trying to understand the tradeoff of providing liquidity.
What to type in
How much capital you started with and how much each token price moved.
Start with the assumptions, then use the interpretation below to compare tradeoffs without bouncing between sections.
1.0 = unchanged, 2.0 = doubled, 0.5 = halved.
1.0 = unchanged, 2.0 = doubled, 0.5 = halved.
LP tradeoff
Holding would be worth $12,500.00, while the pool ends at $12,247.45 in this price scenario.
Pool value
$12.2K
Impermanent loss
$252.55
IL percentage
2.0%
That gap is about 2.0% of the hold value.
Impermanent loss is not about the position losing money absolutely. It is about underperforming a simple hold.
Trading fees can offset some of this, but this calculator isolates the price-move effect.
Before LPing, decide whether fee income is likely to compensate for the underperformance risk.
Test multiple price paths, not just one, because asymmetric moves change the result fast.
Calculators are useful for scenarios. BetterOff connects supported accounts so you can compare those assumptions with synced balances and transactions.
Connect a supported bank, brokerage, or exchange. Connections are read-only, encrypted, and cannot move money.
Use this if you want to understand how the calculator works, not just plug in numbers.
Step 1
Specify total capital deposited into the LP position.
Step 2
Set the price multiplier for token A (2.0 = price doubled).
Step 3
Set the price multiplier for token B.
Step 4
Compare hold value versus pool value and review IL percentage.
These cover the assumptions, tradeoffs, and edge cases behind the calculator.
Use the calculator for the math, then use these guides to make the decision with more confidence.
Reviewed by FinSync LLC
HODL vs. providing liquidity
HODL value
$12.5K
LP value
$12.2K
2.02% impermanent loss vs. HODL