Accurately calculate impermanent loss for Uniswap liquidity positions. Easily analyze potential losses from price divergence for DeFi liquidity providers.
AI Generation Prompt
Free Uniswap Liquidity Provider Impermanent Loss Calculator
Overview
A clean, professional, and responsive web application designed for DeFi liquidity providers to calculate impermanent loss (IL) based on price divergence. The tool compares the current value of a liquidity pool position against a simple "HODL" strategy, allowing users to assess the risk of their DeFi investments.
Technical Architecture
- Single File: The app must be contained within a single
.htmlfile. All CSS and JS must be embedded within<style>and<script>tags. - Storage Constraints: ABSOLUTELY NO
localStorage,sessionStorage, orcookies. All data must be held in volatile memory only. If the page reloads, the state is reset. - Sandbox Compatibility: Do not use
alert(),prompt(), orconfirm(). If user feedback or input errors occur, render them as custom HTML overlay elements. - CDN Usage: Use CDN-hosted libraries (e.g., Tailwind CSS for styling, Chart.js for visualization, Lucide for icons) to maintain a lightweight codebase.
Feature Set
- Live Calculation: Instant calculation as the user adjusts the price change slider or inputs.
- Visual Data Presentation: A responsive line chart (using Chart.js) illustrating the relationship between price change and impermanent loss.
- Comparison Table: A side-by-side table showing the total value in an LP position vs. the value if the tokens were held individually.
- Responsive Input Fields: Large, touch-friendly sliders and input fields for Price A, Price B, and percentage change.
- Educational Tooltips: Clean, hoverable info icons explaining terms like "Divergence," "Constant Product," and "HODL Value."
UI/UX Design
- Aesthetic: Minimalist, light-mode "SaaS" aesthetic. Use high-contrast whitespace, subtle shadows (e.g.,
shadow-sm,shadow-md), and rounded corners (rounded-xl). - Color Palette:
- Primary:
blue-600for actions and buttons. - Background:
slate-50for the page background,whitefor content cards. - Text:
slate-900for headings,slate-600for body text. - Accents:
emerald-600for gains/positive indicators,rose-600for losses/negative indicators.
- Primary:
- Typography: Use a clean, legible sans-serif stack (e.g., Inter, system-ui).
Implementation Steps
- Setup: Create a responsive container with a centered main card.
- Input Section: Add input groups for "Initial Price Ratio" and "New Price Ratio". Use a range slider for an interactive, smooth user experience.
- Calculation Engine: Implement a JavaScript function that uses the formula:
IL = (2 * sqrt(p)) / (1 + p) - 1, wherepis the price ratio. - Visualization: Integrate a dynamic chart that updates its data points via
chart.update()every time input values change. - Results Section: Display the results in a clean, high-contrast dashboard format with clear "Loss Percentage" and "Value Comparison" labels.
Directives for Developer
- Design: Ensure the layout is mobile-first. Use CSS Grid and Flexbox for all structural elements.
- Responsiveness: Test on mobile, tablet, and desktop viewports to ensure inputs do not overflow.
- Performance: Ensure the calculation script is optimized to run efficiently with no lag, even if the user slides the input rapidly.
- Safety: Verify that no data is persisted and that all external links use
rel="noopener noreferrer".
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Files being used
Frequently Asked Questions
Everything you need to know about using this application.
What is impermanent loss in decentralized finance liquidity pools?
Impermanent loss occurs when the price of the tokens in a liquidity pool changes compared to when you deposited them. The divergence between the price of the deposited assets relative to one another causes your position to lose value compared to if you had simply held the assets in a standard wallet without adding them to a pool. This loss is 'impermanent' because if the token prices return to the exact same ratio as when you deposited them, the loss disappears. However, if you withdraw your liquidity while the prices remain divergent, the loss becomes permanent and is realized upon the withdrawal transaction.
How does this impermanent loss calculator work?
This calculator uses the standard constant product formula (x * y = k) used by Automated Market Makers like Uniswap V2. It takes your initial deposit prices and compares them against the current market price ratio to determine the exact percentage of loss your position has incurred. By inputting your base price and the change in price, the tool calculates the difference between the value of your liquidity pool holdings and the value of a 'HODL' strategy, where you would have simply held both tokens in your wallet. This allows you to evaluate whether the trading fees earned in the pool outweigh the potential impermanent loss.
Is my financial data safe using this tool?
Yes, your financial data is completely safe. This tool is built as a 100% client-side, single-file application, meaning no data is transmitted to, processed by, or stored on any external server. All calculations occur strictly within your own web browser's memory. Furthermore, this application does not use cookies, local storage, or any persistent databases. Once you refresh or close the browser tab, all entered data is immediately erased, ensuring your privacy and security throughout your session.
Can I use this tool to predict future earnings?
While this tool is highly accurate at calculating impermanent loss based on price changes, it cannot predict future market movements. It provides a snapshot analysis based on specific hypothetical or current price scenarios to help you model your potential risk and reward. To manage expectations, you should combine these loss calculations with the estimated APR or trading fees generated by your specific liquidity pool. This gives you a holistic view of whether your position is likely to be profitable or if the impermanent loss risk is too significant for your investment strategy.
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