Impermanent loss XYK Equation

Cryptocurrency News and Public Mining Pools

Impermanent loss XYK Equation

Impermanent loss XYK Equation

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.


submitted by /u/monkeycheese7
[link] [comments]