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I'm still learning about Integral FIVE. Could you show me how you guys eliminate IL?

This is a question that's been raised a couple of times in our Discord, and before we would explain it with technical concepts. Below, we use real numbers to prove it.

Below is a table of a few internal metrics we keep. The no IL question can be answered by comparing how two numbers change over time:

- 1.pool value per LP token and
- 2.HODL value per LP token.

These two numbers will reflect Integral's ability to handle impermanent loss, which is defined as "an LP’s return if they simply held onto their assets instead of providing liquidity." If these two numbers are (almost) equal, we can claim that we can eliminate IL.

Now let's use the LINK-wETH pool as an example because it's currently the only pool that supports single-sided deposit and trading. You can see that there is nearly no difference between pool value and HODL value. This is *insane*, because since we launched trading for this pool on April 10th, 2021, ETH has crashed twice. It's nearly impossible to maintain the same pool value and HODL value for other state-of-the-art AMMs, yet we've managed to do it with Integral FIVE.

I won't pretend I will fully understand all the technical docs but can you try to ELI5?

Last modified 3mo ago