Calculating Net LP Profitability

Your true profit as a liquidity provider isn’t just the fees you earn. You must subtract impermanent loss to see your net gain (or loss). If the fees earned exceed the impermanent loss, your position is profitable. Numerous online calculators and dashboards can help you track this in real-time. This analysis is critical for deciding whether to maintain or exit a position. Regularly assessing this net value is key to successful Uniswap earn participation.