Calculate DeFi yield farming returns with impermanent loss estimation, LP token value, and APR/APY comparison across protocols.
A liquidity position can earn rewards while still underperforming the same tokens held outside a pool. This calculator combines deposited value, token price changes, farming rates, and holding time to compare LP value, estimated rewards, APR, and compounded APY. Its impermanent loss figure is a relative result: it measures the difference between providing liquidity and simply holding the original assets. It does not necessarily mean the position lost money in currency terms.
The calculator uses the starting liquidity position and subsequent token price changes to estimate the value represented by the LP position. It then compares that amount with the value of retaining the originally deposited tokens. The percentage difference is impermanent loss. This comparison is meaningful only when the selected pool assumptions match the actual pool.
APR represents an annualized return without reinvesting interim earnings. APY represents a compounded annual return, so it depends on how often rewards are assumed to be reinvested. The calculator applies the stated rate and duration to estimate farming income, then presents that income alongside LP value and impermanent loss rather than treating headline yield as the entire result.
Rewards add value, but the pool continually changes the quantities of the two assets represented by the position. After a large relative price move, the LP position can be worth less than the untouched deposit would have been. If that difference exceeds fees and incentives earned, the farm has positive income but negative performance against the holding benchmark.
No. APY annualizes a rate under a compounding assumption. It does not ensure that the farm's APR, reward emission, pool fees, token prices, liquidity, or reinvestment costs will remain constant. Use it to compare stated scenarios, not as a forecast or guarantee of realized returns.
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