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    IL Protection By Pool

    In this dashboard, we will take a look at the impermanent loss protection paid out to each pool in the last week and in the past 30 days. From THORChain docs; "Impermanent loss is the difference between holding tokens in your wallet versus staking them in a liquidity pool. When the value of tokens in the pool isn't stable, bots work to balance the ratio while profiting off of the price difference (arbitrage). This profit comes out of the pockets of liquidity providers."

    Graph below shows the total IL insurance paid out to LP providers for the past 7 days and past 30 days. We can see that there isn't much difference in volume paid past week and past 30 days.

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    The IL insurance will be paid out whenever user remove liquidity so the total IL paid will relate proportionally volume of LP removed as can seen in graphs below.

    In conclusion, impermanent loss paid correlates proportionally with volume of liquidity removed as seen in analysis above. However, price fluctuation also has to be taken into consideration.