Impermanent loss changes with the price(P0) of starting farming for uniswap V3

In the previous article, we deduced how the impermanent loss of uniswap V3 is calculated. The impermanent loss of V3 is the following complex calculation formula:

In order to more intuitively understand the impermanent loss of uniswap V3, the author recorded a video, which dynamically displayed the change of V3 impermanent loss with different price starting farming within the set price range. We found that the farther away from the price starting point, the greater the impermanence loss; At the midpoint of the price change range, the impermanent loss of price rise and fall is symmetrical about the midpoint, for example, in the video, the market making price range is (1,4), then the impermanent loss is symmetric for both sides of p0=2.

if you worried about impermanent loss, you can try X3 protocal providing an unique zero impermanent loss solution by providing single-sided AMM liquidity.

Official website: http://x3.finance/

Introduction Video: https://www.youtube.com/watch?v=w1aI2hgy6rQ

Telegram: https://t.me/x3_finance