Adamas Benchmark: No Impermanent Loss

Adamas pools act like a daily rebalancing portfolio composed of roughly 1/3 ETH, 1/3 WBTC, and 1/3 stablecoins (with zero transaction costs for rebalancing). This rebalancing strategy results in no impermanent loss for LPs.

How Adamas Stacks Up Against the Benchmark

Adamas benchmark is no impermanent loss. It achieves this through tracking a theoretical costless DRP.

If we look at a sample of Adamas performance, we see that it closely tracks the DRP while staying slightly ahead of it--finishing the interval almost 40 basis points ahead.

Adamas was within 1 bps of the DRP for more than three-quarters of the days in the period. For those days where Adamas and the DRP diverged by more than 1 bps, Adamas was in the leading position more than two-thirds of the time (23% vs. 10% of days).

The reason for return divergence is that Adamas FMM will make trades continuously with traders over the course of a day, while the theoretical DRP is simulated to costlessly rebalance once per day. Despite the divergences, the daily correlation of percent returns to the returns of the DRP was extremely high at ρ = 0.9996.

Adamas close tracking of the DRP is what enables it to hit its no impermanent loss benchmark.

👉 Visit Adamas benchmark page for real-time performance.