impermanent loss is the invisible tax on every liquidity provider.

here’s the math:
– you deposit 50% token a + 50% token b
– if token a doubles in price while token b stays flat, the pool rebalances
– your share of token a decreases, so your lp position underperforms simply holding

dedust and tonco leave you exposed to this.
stonfi doesn’t.

with il protection, the protocol calculates the difference between your lp return and a pure hold return.
if lp underperforms, the gap is reimbursed from stonfi’s ilp fund.

this changes the economics of liquidity provision:
– downside is buffered
– yield is stabilized
– capital providers can commit longer without fear of volatility swings

on other dexes, il can erase your apr.
on stonfi, apr actually means yield you can keep.

#volatility impermanentloss