How to Calculate Impermanent Loss on Uniswap V2 | DeFi

How to calculate impermanent loss on constant product automated market maker like Uniswap V2
0:00 - Intro
1:04 - Definitions
3:05 - Rewrite x and y in terms of L and P
6:44 - Derive formula for impermanent loss
Notes
github.com/t4sk/notes
Reference
/ how-to-calculate-imper...
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[@sanjayojha1]

Superb work to make us understand the basic of Financial Math. We want this type of videos for other DeFi terms. Learning this will make us better coder and also better DeFi expert.

[@lanreakintayo3443]

You are the best man... The way you comprehensively explain mathematical concepts like this makes it very easy to understand the smart contract. Keep on being inspirational and awesome.

[@rattle_]

This is hands down probably the best channel in crypto due to content like this. Thank you!

[@smartcontractprogrammer]

0:00 - Intro
1:04 - Definitions
3:05 - Rewrite x and y in terms of L and P
6:44 - Derive formula for impermanent loss
Notes
github.com/t4sk/notes
Reference
medium.com/auditless/how-to-calculate-impermanent-loss-full-derivation-803e8b2497b7
Take a course
www.smartcontract.engineer/

[@xenomace2983]

Hello. Do you have telegram or discord channel?

[@smartcontractprogrammer]

www.smartcontract.engineer/contact

[@smartcontractprogrammer]

Correction to P0 and P1 8:36
P0 = Y0 / X0
P1 = Y1 / X1

[@yusuferdogan4985]

You are amazing and inspirational, has any recommended documentation for Defi

[@eugenionull9758]

awesome!!!

[@vivekascoder]

Just a question, the final equation gives the % of IL faced by the user so if the value is 3 then it means that the IL faced by the user at t1 is 3% of the total value if he didn't added funds into the AMM, right ?

[@eugenionull9758]

Got ant maths on interest for borrow, lending and liquidation threshold? that would be nice to dive in

[@berealmusic]

Great

[@user-ub9qb7gd4e]

nice!!!!!

[@muniapriyansu8805]

Hey! can you please make a series on Upgrade patterns, other youtubers have done it but no one matches your explanatory skills.

[@HirenKavad]

Can you please create explanation video for uniswap V3 impermanent loss ?

[@smartcontractprogrammer]

Interesting. Maybe

[@zulfiqar7967]

Can you do some projects, it will be helpful to improve skills on web3 and solidity..

[@amirhosseinghasemi6280]

please tell me what application do you use to write this note🙏?

[@smartcontractprogrammer]

excalidraw.com/

[@bertkellerman5821]

I believe you have a mistake at 8:53. It should be P_0 = y_o/x_o not P_0=x_o/y_o

[@TheGaneshshow]

why k = l^2. Thank you.