We all know impermanent loss is the most annoying thing in pools😵. But few people think about the fact that impermanent loss changes depending on the pool’s token ratio⚖️.
For example☝️, on STON.fi there’s a WCPI STON/TON pool with a 75%/25% ratio, and there’s also a standard STON/TON pool with a 50%/50% ratio.
So, where are impermanent losses smaller🧐👇?
In a standard 50/50 pool:
🔹50% change – 2.02%
🔹3× – 13.39%
🔹5× – 25.46%
In a 75/25 pool, where the 75% share token changes:
🔹50% – 1.42%
🔹3× – 8.81%
🔹5× – 16.40%
In a 75/25 pool, where the 25% share token changes:
🔹50% – 1.62%
🔹3× – 12.26%
🔹5× – 25.23%
In a 75/25 pool, where both tokens move (one rises, the other falls):
🔹50% – 5.18%
🔹3× – 25.76%
🔹5× – 41.15%
As we can see, weighted pools significantly reduce impermanent loss 📉 — but only in cases where one asset moves while the other stays almost still, or moves in the same direction📈.
That’s why I’d choose the WCPI STON/TON pool, since both tokens are likely to grow in parallel🚀.
