Staking Rewards and Impermanent Loss – How do you really track it?

asked by u/lucia.weber · 12d · 1 answers

Hey everyone, I've been dipping my toes into some DeFi protocols, mainly trying out some liquidity pools on a few different DEXs. The staking rewards look pretty enticing, and I understand the concept of impermanent loss and how it can eat into those gains. What I'm struggling with is how you all actually track your real returns after accounting for IL, especially if prices are fluctuating a lot? Is there a go-to method or tool you rely on, or is it more of a 'back of the napkin' calculation until you exit a position?

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  • u/fx_quant_lee· 1 pts· 12d

    Honestly, the only way to truly track it accurately is to pull your liquidity out and then calculate your gains/losses against what you would have had if you just held the tokens. Anything else is just an estimate until you close the position.

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