Astroport Academy: Technical Introduction to Impermanent Loss

Impermanent Loss

k = 10,000 * 500 = 5,000,000
x = sqrt(k / r)y = sqrt(k * r)
x = sqrt(5,000,000 / 0.05) = 10,000 ASTROy = sqrt(5,000,000 * 0.05) = 500 axlUSDC
x = sqrt(5,000,000 / 0.1) = 7071.067811 ASTROy = sqrt(5,000,000 * 0.1) = 707.106781 axlUSDC
k = 7071.067811 * 707.106781 = 4,999,999.99807
7071.067811 ASTRO / 5 = 1414.2135622 ASTRO707.106781 axlUSDC / 5 = 141.4213562 axlUSDC

Conclusion

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Astroport

Astroport

An automated, decentralised exchange protocol on the Terra blockchain. http://astroport.fi