On impermanent loss in LPs - how do you actually account for it?
Been dabbling a bit more with liquidity providing, specifically on some smaller pools on Uniswap V3. I get the concept of impermanent loss, obviously, that it's the difference in value compared to just HODLing the individual assets. What I'm struggling with is how people actually account for this in their P&L, especially when impermanent loss can swing pretty wildly with volatility.
Do you guys track it as a theoretical loss against your original deposit? Or only when you actually withdraw and see the realized difference in token quantities? I'm trying to figure out a robust way to journal this without constantly recalculating hypothetical P&L based on current prices. Curious how more experienced LPs approach this for actual financial tracking.
Ah, the old impermanent loss conundrum. I've found the easiest way to account for it is to just not look at your P&L too closely when the market's doing its usual volatile dance. Out of sight, out of mind, right? Less stress for my blood pressure, anyway.