Impermanent Loss Protection
Update: Impermanent Loss Protection (ILP) has been completely deprecated on THORChain. However, MayaChain continues to offer ILP at a rate of 1% per day.
ILP on MayaChain:
ILP coverage begins on the 50th day after entering the pool.
If ASSET outperforms CACAO, full ILP coverage is achieved after 150 days (50 days from the initial deposit plus 100 days in the pool).
If CACAO outperforms ASSET, full ILP coverage is achieved after 450 days (50 days from the initial deposit plus 400 days in the pool).
For example, if you deposit $1,000 worth of ASSET and CACAO into the pool, you will be able to withdraw at least $1,000 worth of ASSET and CACAO after 150 days, regardless of the pool's performance or the price action of the assets (assuming ASSET outperforms CACAO).
For more details on ILP on MayaChain, check out this resource:
Last updated