Reducing impermanent loss

Practical tactics to keep fees ahead of IL when LPing with Super9MM.

You can't delete impermanent loss — it's the cost of providing liquidity through price moves. But you can manage it so fees earned outweigh IL incurred. Here's how, with Super9MM.

1. Earn more fees than you lose

IL only hurts if fees don't cover it. The biggest lever is staying in range and earning:

• Keep auto-rebalance on so you're not sitting out-of-range earning nothing while still exposed.
• Keep auto-compound on so fees grow your base.
• Pick pools with strong Fee/TVL (see the screener) — more fee income to offset IL.

2. Match width to volatility

Tighter ranges amplify both fees and IL. On volatile pairs, a too-tight range can rack up IL faster than fees. Widen the range (or use a wider Strategy) for volatile assets. See Choosing range width.

3. Use direction policy in trends

In a strong trend, two-way rebalancing keeps "selling the winner / buying the loser." If you have a directional view:

• Up-only rebalancing follows price up (you keep more of the rising asset's exposure pattern).
• Down-only rebalancing accumulates the base asset on the way down.

This won't remove IL, but it aligns rebalancing with your thesis instead of fighting it.

4. Set protective exits

If a pair moves hard against you, stop-loss can close the position to a single token at a level you choose — capping how far IL can run. Take-profit does the same on the upside.

5. Prefer correlated / lower-volatility pairs

Pairs whose prices move together (e.g. two correlated assets, or asset/stable on a strong asset) experience less divergence, hence less IL — while still earning fees. They're often the most comfortable place to run tight, automated ranges.

6. Mind the costs

Rebalances cost gas + slippage. On thin pools those costs can themselves erode returns — see Fees & costs and prefer liquid pools for tight strategies.