Liquidity pool loss?

I have put in about 10 ethereum into the liquidity pool. I halved it, so I put a little over 5 ethereum into the liquidity pool and the amount of prv to the match it. I checked how much I currently own in the liquidity pool. I have about 4.47 ethereum, and about 1818 prv. But that doesn’t add up to 10 ethereum. It’s only about 8.9 ethereum.

Just wondering if it’s because of market fluctuation? But it should still add up to be closer to 10 ethereum than that surely?

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If the price of the coins diverge from the value you put in, you take an L. This can potentially be regained as time goes on. Providing liquidity seems more like a long term investment then short term.

Check out this to fully understand whats happening: Impermanent Loss - Liquidity providers must know.


I make the simple calculation. Adding liquidity is such as 50 : 50 share. Comparison between holding & on liquidity. And i calculate base on value of PRV or coin , not base on sum of PRV or coin.

Let get started " Ignoring fee & reward on this simple calculation "

Assume, that current price of PRV is $4.0 and we have PRV where was bought on that price.

We add liquidity, pairing PRV/USDT 50:50

Our asset :

1000 PRV x 4 Usdt = 4000 usdt
4000 USDT

Total Value of our asset are 8000 usdt.

Advantage & Disadvantage asf:


For example. Prv price is up become $6 usdt per PRV. 50% up.

Then,somebody SELLING sum of his prv = 100 PRV. Meaning he give us , his 100 PRV and we give him 600 USDT.

Our asset become 1100 PRV and 3400 USDT ( Total value our asset become 1100*6 + 3400 Usdt = 10,000 USDT , profit 2000 usdt. 25% only.

Comparison : If we hold in PRV not within liquidity or not include USDT all in PRV, so our asset value are 2000 PRV * 6 USDT = 12,000 USDT . 50% profit.

We dont get another 50% opportunity, sum of $4000 profit ( 12,000 - 8,000 = 4000 USDT). Because in pDEX we get profit 2000 usdt only ( 10,000 - 8000 = 2000 usdt )


For example. Prv price is DOWN become $2 usdt per PRV. 50% down.

Then,somebody SELLING sum of his prv = 100 PRV. Meaning he give us , his 100 PRV and we give him 200 USDT.

Our asset become 1100 PRV and 3800 USDT ( Total value our asset become 1100*2 + 3800 Usdt = 6,000 USDT , lose value 2000 usdt only ( 8000-6000 =2000 usdt ). 25% lose only.

Comparison : If we hold in PRV, not within liquidity or not include usdt, so our asset value become 2000 PRV * 2 USDT = 4,000 USDT . Lose 4000 Usdt ( 8000-4000=4000 Usdt ). Lose 50%.

So by adding liquidity in pDEX ,we PREVENT lose another 25% , sum of $2000 LOSE ( 6,000 - 4,000 = 2000 USDT) only.

From above simple case.

Adding liquidity on pDEX is such as share 50% lose & 50% profit.
If price goes up , we will not getting 50% opportunity profit but 25% only.
If price goes down , we protect our asset value from 50% of Lose value. We lose 25% only.

If looking into present liquidity reward is around 16% apy. And spread price between selling & buying price are around 2%.

Let say, it is accour yearly.

If prv price up 50% , we get around 25+16+2 = 48% profit

If prv price down 50%, we get lose 25-16-2 = 7% only.

Adding liquidity is still well strategy. As at any time we can withdraw our asset.

Staking pool, required around 1 up to 3 days if huge wd request.

Vnode/pNode stake. To unstake required more than 30 days

" if any wrong calculation please comment and corrected "


Providing Liquidity is a long game, you initial investment fluctuates over time. You must add your weekly earnings to the equation before You start declaring losses.
Additionally It is not a loss until you pull the liquidity, so patience and timing is required to walk out with same pairing you walked in with. This is an exchange after all.
Since the recent drop my pairs are PRV heavy, I am invested since April and have seen it flux both ways so I am not losing sleep over it. When a PRV price rises the pairs will flow back in the crypto direction.


Hey all, the articles on impermanent loss usually talk about ETH:Stablecoin, while in incognito we explain in PRV:Stablecoin.
The thing is, PRV:ETH is an asset pair that has fluctuations in both sides. What happens when both assets rise in price by say, 100%? Is impermenant loss doubled because 2x*2y, or does the value-pair even out because x:y ratio stays the same?

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Try to calculate base on value for both coin. It will be easy to know.