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What Is the Difference in Impermanent Loss Calculation for a Standard Pool versus a Concentrated Pool?

In a standard pool, IL is calculated based on the divergence of the final price ratio from the initial ratio, spread across the entire price range. In a concentrated pool, the IL calculation is more complex.

It is only calculated relative to the price movement within the defined range, and the IL becomes 100% (relative to the deployed capital) once the price moves outside the range, as the position is entirely in the less valuable asset.

Explain the Concept of “Concentrated Liquidity” and Its Impact on Impermanent Loss
How Does a “Concentrated Liquidity” Model Affect Liquidation Price Impact?
What Are the Trade-Offs between Capital Efficiency and Impermanent Loss in Different AMM Designs?
What Is the Risk of “Range-Bound” LPs in a Concentrated Liquidity Model?