Two Simple Ways to Track Impermanent Loss While Farming Crypto

If you’re into farming crypto, which is technically known as providing liquidity to an automated market maker, then chances are you’ve heard of impermanent loss. Tracking impermanent loss may be difficult especially if at the start of your farming, you didn’t record the price of the underlying assets.

I mean, you can go into the blockchain explorers like Etherscan and Bscscan to check the transactions and then correlate them to the price at the time of transaction but all that is an inconvenience.

This post will introduce two ways I track my impermanent loss automatically just by using my wallet address. These impermanent loss trackers are easy to use, accurate, and are developed by trustworthy companies. Let’s get started.

BTW, if you want to calculate how much impermanent loss can be compared to just HODL-ing two tokens, check out this nifty calculator.

Apeboard.finance

Apeboard is a decentralized financial tracker that aims to display all of users’ crypto net worth, asset allocation, transaction history, and analytics in one place. Apeboard finance currently supports Ethereum, Binance Smart Chain, Terra, Solana, Binance Exchange and Polygon. Here is their landing page.

To begin tracking, I can create a profile or just simply input my wallet address. There is no need to connect Metamask or any third party app. It takes a bit to load but eventually my dashboard will look like this:

It shows my net worth, all my wallet balances, any balances in my farms and staking pools, etc. For impermanent loss, I just click on my pool, in this case it’s the BNB-Cake pool and there’s a section in the popup that shows the impermanent loss. 

In order to determine the amount of profit I get if I pull my funds out of the farm, I can simply add the “Total Change” number to the amount of fees I received from providing liquidity. In this case, I’ve already harvested most of the fees so they are not shown in the tracker.

defi.watch

The other tool that I’ve used is defi.watch. The mission of defi.watch is to gather pieces of the DeFi ecosystem in one place and under one simple and intuitive interface. Indeed, their interface is very nice to use, intuitive, and clean.

Similar to Apeboard, to begin tracking my crypto, all I need is my wallet address. 

Then, to see my impermanent loss, I click on my farm/project, and then click on the “HODL” option. Under the profit column, I can see the impermanent loss.

Again, to calculate the amount of profit if I pull out my funds from the farm, I can simply add the “Profit” here (which is negative) to the total amount of fees I received. 

And that’s it. Those are the two impermanent loss trackers that I have used and continue to use. They help me understand how my investments are performing over the long term and assist me in making financial decisions. As always, in the space of crypto, this isn’t financial advice nor am I a financial advisor. Always do your own research. Thanks for reading.

For the website walkthroughs, check out this YouTube video: