Does the Weighting of Assets in a Multi-Asset Pool Directly Correlate to the Share of Impermanent Loss Attributed to Each Asset?

No, the weighting does not directly correlate to the share of impermanent loss in a simple way. The impermanent loss is a function of the relative price changes of all assets in the pool.

A higher-weighted asset will have a greater influence on the pool's overall value. However, the magnitude of IL is driven by the divergence of the lower-weighted, more volatile assets against the more stable, higher-weighted assets.

A small, volatile asset can be the primary driver of IL for the entire pool, even with a low weighting.