DeFi Seeker
Impermanent Loss Calculator
Effortlessly calculate impermanent loss for Uniswap V2, V3, and V4 with DeFi Seeker app.
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Impermanent Loss Calculator
Effortlessly calculate impermanent loss for Uniswap V2, V3, and V4 with DeFi Seeker app.
Scan to Download
DeFi Seeker is one of the few tools on the market that simultaneously supports the full range of Uniswap V2, V3, and V4 protocols. Analyze your liquidity seamlessly, no matter which protocol generation it resides in.
Specifically designed for Uniswap V3's complex concentrated liquidity model. Provides precise calculations and analyses to accurately assess impermanent loss and fee earnings within specific price ranges.
Leverage DeFi Seeker's cutting-edge capabilities to analyze impermanent loss within the highly customizable Uniswap V4 "hook" environment. Understand how unique pool logic impacts your LP positions and potential returns.
Bid farewell to complex calculations. Our clean and straightforward design makes impermanent loss analysis accessible, allowing even DeFi newcomers to quickly grasp insights with ease.
Flexibly adjust key parameters like initial investment amount and price fluctuation range to simulate potential impermanent loss under various market conditions, helping you optimize your LP strategy and maximize returns.
Go beyond mere calculations. DeFi Seeker provides strategic insights based on your data and market conditions, helping you optimize liquidity deployment, effectively mitigate risks, and boost potential returns.
Impermanent Loss (IL) is a potential reduction in the value of your assets that can occur when you provide liquidity to a decentralized exchange (like Uniswap) liquidity pool. This reduction arises if the prices of the tokens within the pool change (either going up or down) relative to their initial ratio at the time of your deposit. Essentially, it's the difference between the current value of your assets in the liquidity pool and what their value would be if you had simply held those same tokens in your wallet instead. This loss is called "impermanent" because should the token prices eventually return to their original ratio from when you first provided liquidity, the loss will disappear.
Uniswap V2 operates on a Constant Product Market Maker (CPMM) model, defined by the formula: x * y = k.
When you provide liquidity, you deposit both tokens in equal value according to the pool's current ratio.
Unlike Uniswap V2 where liquidity is spread evenly across all possible prices (from 0 to infinity), Uniswap V3 allows liquidity providers (LPs) to allocate their capital within specific, customizable price ranges. This dramatically increases capital efficiency within those ranges but also introduces new dynamics for IL.
When you provide liquidity in V3, you select a minimum and maximum price for the trading pair (e.g., ETH/USDC range 2,500-4,500). Your capital is only active for swaps within this chosen range.
Uniswap V4 introduces a singleton architecture (all pools reside in one contract) and, crucially, "Hooks." Hooks are external contracts that can execute custom logic at various lifecycle events of a pool (e.g., before/after swaps, before/after adding/removing liquidity, before/after fees are collected). This programmability has a profound impact on IL.
Unlike V2's fixed x*y=k curve or V3's concentrated x*y=k within ranges, V4 allows pool creators to implement virtually any price curve or liquidity distribution logic through hooks.