Impermanent loss is not an actual loss, but the difference between what you got in a pool and what you could have gotten by simply holding tokens. Let's break it down using STON/USDT as an example.



Suppose you added 1000 STON and 2000 USDT at a rate of 2 USDT per STON. Total value 4000 dollars. The STON rate rose to 3 dollars. If you had simply held the tokens, you would have 5000. But in the pool the balance shifted, and your share is now worth about 4897. The 103 dollar difference is IL.

For a while STONfi had IL protection running for this pair. If losses occurred, the platform compensated them from a special fund. You received exactly what you missed compared to holding. It was a great solution specifically for this pair, and it worked very well in its time. But the program was discontinued because maintaining such payouts indefinitely is hard, especially during prolonged volatility.

$GRAM
GRAM-1.30%
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