I'm still learning about Integral. 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. 1.
    pool value per LP token and
  2. 2.
    HODL value per LP token.
Pool value indicates how much (in USD) you get after putting 1 USD worth of crypto into Integral's pool, during the time period. HODL value is quite similar except it’s benchmarked by keeping the same amount of crypto in your wallet instead of our pool.
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, 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.

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

"Integral has 3x Binance liquidity". How did you do that?

What if Binance stops providing the data feeds of their Orderbook? Will Integral be dead?

Will the trade delay apply to deposit and withdrawal as well?

Yes. Every action (trade, withdraw, deposit) is subject to the same delay.
Last modified 8mo ago