A super simple spreadsheet and formulas to track your LP profitability
Over the past week, we've seen moon liquidity increase pretty dramatically. With CCIP-051, it's likely many more users will add their moons to liquidity. However, one thing that may be difficult for some users is tracking actual profitability and impermanent loss.
With LPs, it's very likely to have one of your assets go below the initial deposit amount. However, if the other asset goes higher, and you can swap the gained asset amount and end up with greater total assets, you can consider yourself to be in profit. However, if the gained asset amount cannot be swapped for the entire deficit, you as suffering impermanent loss.
I made a spreadsheet to track LP performance over time. If you're looking for a way to track you LPs, feel free to use these super spreadsheet formulas to help. The table will show ETH-MOON pool tracking.
| A | B | C | D | E | F | G | |
|---|---|---|---|---|---|---|---|
| 1 | Date | ETH quantity | Moon quantity | ETH change | Moon Change | ETH -> Moon swap | Moons gained |
| 2 | 2/1/2023 (day LP starts) | .1 | 1000 | = B2 - $B$2 | = C2 - $C$2 | Type in the ETH change in the DEX to see how many moons you will get. If ETH change is negative, put (-) before entering in the cell | = F2 + E2 |
| 3 | 2/2/2023 | .11 | 950 | = B3 - $B$2 (.01) | = C3 - $C$2 (-50) | whatever the DEX says, currently .01 ETH gets approximately 100 moons, so enter 100 | = F3 + E3 (100 + -50, so this would show 50 moons gained total) |
| 4 | 2/3/2023 | .099 | 1075 | = B4 - $B$2 (- .001) | = C4- $C$2 (75) | Since .001 ETH gets 10 moons, you would enter -10 | = F4 + E4 (75 + -10, so + 65 would show here) |
I hope this is helpful for anyone looking to track LP profitability. Add rows as necessary if you'd like, or keep the sheet as 2 rows. I like to track the LP over time to see how it grows and shrinks as prices change.
Edit: to be clear, in the formula sheet, don't type in anything in the ( ). I italized for further clarity.