Impermanent loss XYK Equation
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Hey guys, I've been trying to grab my head around the XYK formula for impermanent loss, I have attached the referenced example and section that confuses me. If in this scenario ETH increases to 200USD: how do I use the formula to get the new balance of 7.071 ETH in the pool? I understand that 200*7.071 must = 1414.21 DAI, but how do I get the 1414.21 DAI? I feel like there always two unknown variables in the XYK formula…? Any insight appreciated. Thanks! submitted by /u/monkeycheese7 |
