IL Protection Over Time
Impermanent Loss is a loss incurred whenever you provide a liquidity pair. It happens when one of the asset in the pair changes in price which cause the balance of the pair to automatically adjust. So, there will be losses/gains when you exit the liquidity because USD worth when provide LP vs USD worth when exit LP are different. So, Impermanent Loss = (Value of LP) - (Value if holding). In this dashboard, we will take a look at the IL protection paid out recently vs paid out historical.