DeFi Impermanent Loss AMM Simulator.

## The Liquidity Provider Trap

Automated Market Makers (AMMs) like Uniswap constantly rebalance your crypto assets to maintain a 50/50 dollar-value ratio. If you deposit ETH and USDC, and Ethereum violently spikes 2x in price, the AMM automatically sells your ETH for USDC on the way up to maintain the 50/50 balance.

### FAQ

**Q: What exactly is Impermanent Loss?**
A: If you had simply held the ETH in your cold wallet ('HODL'), you would have captured 100% of the price spike. Because you put it in the AMM, the contract sold your winners. Impermanent Loss calculates exactly how much money you lost compared to if you had simply done absolutely nothing and held.