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    IL Protection Over Time

    Impermanent Loss is a loss incurred whenever you provide a liquidity pair. It happens when one of the asset in the pair changes in price which cause the balance of the pair to automatically adjust. So, there will be losses/gains when you exit the liquidity because USD worth when provide LP vs USD worth when exit LP are different. So, Impermanent Loss = (Value of LP) - (Value if holding). In this dashboard, we will take a look at the IL protection paid out recently vs paid out historical.

    In conclusion, for $ETH pool, most of the IL protection paid out was from end of last year, not recently.

    Graph below shows the historical cumulative amount of IL protection paid out to each pools on THORChain since November last year. We can see that ETH.ETH has the highest IL protection paid out, with over 400K USD from the past few years thus far, followed by BUSD, XRUNE and BTC.

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    Crypto market has been very choppy as of recently, where $BTC breaks down below 30K and $ETH also goes below $2000. Let's take a look at ETH pool because it has highest total of IL Protection paid out. Graph below shows the IL protection paid out against $ETH price. From the graph, we can see that from December 21 to Feb 22, $ETH went down from ATH to $2500 and we can see that the IL protection paid out.

    Graph below shows the cumulative IL protection paid out past 7 days, past 30 days and historical. We can see that most of the total IL protection paid out past 7 days and 30 days was smaller and most of the IL protection paid out was during Dec'21-Feb'22.