The loss a liquidity provider takes versus simply holding, when pooled asset prices diverge.
In a constant-product pool the LP automatically sells the winner and buys the loser as prices move. A 2× divergence costs ~5.7% versus holding; 4× costs ~20%. Fees can offset it — or not.
Use the free impermanent-loss calculator to price a position before entering, and compare the result against the pool’s fee APR in the yields screener.
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