The PEPT Game Impermanent Loss Strategy.

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This @pepEntropy account and token manages and administers the Qualitative Investment Strategy use case for The #pept Game of life.

where-the-pool-sits-on-the-il-curve-20261110.pngimpermanent-loss-since-start-20261110.png

You're invited to check out the previous blog in the PEPT Liquidity Pool Tracker series.

About this series: the PEPT LP Tracker is a tool for building, testing and recording strategies. These posts show how we use it on our own strategy accounts. Nothing here suggests that you buy, hold or sell any token.

Following Plan-Do-Check-Act, the Continuous Process Improvement method at the core of The PEPT Game platform and ecosystem, this post checks on our pepentropy.s001@pepentropy.s001 strategy for the SWAP.HIVE:SWAP.DOGE pool and looks at a topic every liquidity provider needs to understand: impermanent loss.

From PEPT LP Tracker Summary

Value (SWAP.HIVE)Change since start
S001: DOGE pool + trading (actual)6,109.537−2.82%
Pool only (no trading)6,199.487−1.39%
If held (no pool)6,199.611−1.39%
  • Actual: what pepentropy.s001@pepentropy.s001 holds now: pool position, tokens in the account and tokens locked in open orders.
  • Pool only: the starting pool position left alone, with no trading.
  • If held: the same starting tokens kept in a wallet, outside the pool.

Tracking started 2026-11-08 23:11 UTC. Compared with simply holding, the strategy is at −1.45% (−90.074 SWAP.HIVE). Our pepentropy.s001@pepentropy.s001 strategy account is providing 1.071% of the pool liquidity.

What the prices did

pool-price-and-trend-20261110 (1).png

Since the start, SWAP.DOGE moved −2.66% against SWAP.HIVE. The pool price went from 1.643508 to 1.599806 SWAP.HIVE per SWAP.DOGE.

In US dollars over the same period: SWAP.HIVE +2.49%, SWAP.DOGE −0.23%.

Impermanent loss, in plain words

where-the-pool-sits-on-the-il-curve-20261110.png

A liquidity pool keeps its two tokens in balance. When one token's price rises against the other, traders swap into the pool to buy the cheaper side, so the pool ends up holding less of the rising token and more of the falling one. Compared with simply holding both tokens, that shift costs something. That cost is impermanent loss.

Three things worth knowing:

  1. It depends on how far the prices move apart, not on which way. A token doubling against its pair costs the same as it halving.
  2. It's "impermanent" because it can shrink again. If the prices return to where they started, the loss disappears and the fees earned stay.
  3. Fees work against it. Every swap pays a fee that stays in the pool, so each pool share is backed by a little more of both tokens over time.
Price move between the two tokensImpermanent loss
25%about 0.6%
50%about 2.0%
doubling (or halving)about 5.7%
4× (or ¼)about 20%

Where the SWAP.HIVE:SWAP.DOGE pool is now:

  • Price-only impermanent loss: −0.01%
  • Fees earned per pool share: +0.006%
  • Pool share against holding, fees included: −0.00%
  • Break-even band: with the fees earned so far, the pool stays ahead of holding while SWAP.DOGE is between −2.2% and +2.2% against SWAP.HIVE from the start. Right now the pool is outside the band: fees have not yet covered the price gap.

Qualitative Investment Strategies (QIS)

This strategy follows The PEPT Game's 3-year outlook (read the outlook), which includes continuing to accumulate Hive/HP/SWAP.HIVE (item #1) and re-investing earnings into PEPT Game liquidity pools (item #3). pepentropy.s001@pepentropy.s001 applies that to the SWAP.HIVE:SWAP.DOGE pool: the plan is to accumulate SWAP.HIVE and SWAP.DOGE while earning pool fees, not to trade in and out for quick gains.

That changes how we look at impermanent loss. The pool automatically gathers more of whichever token is falling, which is the token we want more of while it's cheap. Our SWAP.DOGE orders on the market aim to do the same: buy below the pool price and sell above it. The tokens gathered at lower prices are meant for a future distribution contract on one of The PEPT Game's liquidity pools, supporting the pools named in item #3 of the outlook.

Token count, start vs now:

TokenStartNowChange
SWAP.HIVE3,000.0003,055.338+55.338
SWAP.DOGE2,000.0001,909.106−90.894

The loss only becomes real if the position is withdrawn while the prices are apart. Our plan is to stay in the pool and keep accumulating, so we watch the break-even band and the fees rather than the daily price.

Counting every token pepentropy.s001@pepentropy.s001 holds (pool, account, staked and open orders), the account is worth 6,206.669 SWAP.HIVE (about $266.55), −1.29% since the start after noted transfers.

TokenAmountValue (SWAP.HIVE)Share
SWAP.HIVE3,110.5413,110.54150.1%
SWAP.DOGE1,909.1063,054.19949.2%
BEED2.99541.9300.7%

Progress Charts

ChartComment
pepentropy-s001-change-since-start-20261110.pngChange since the strategy start: actual vs pool only vs if held.
swap-hive-and-swap-doge-in-usd-20261110.pngBoth tokens in US dollars, indexed to 100 at the start. When the lines move apart, impermanent loss grows.
impermanent-loss-since-start-20261110 (1).pngPrice-only loss compared with what a pool share actually did, fees included. The gap is fees earned.
where-the-pool-sits-on-the-il-curve-20261110.pngThe impermanent loss curve with our break-even band and where the pool is now.

This week's notes

Our PEPT LP Tracker is boosting productivity and yield. Being able to view the trade order book is valuable and now I can do it using this LP Tracker.

These last few days trading DOGE has been very quiet. The following images shows some active orders.

orders.png
I have taken a position and I am now waiting to see what unfolds in the next day or so.


Please note: the PEPT LP Tracker is a tool to help create, test and record strategies, as demonstrated in this series with our own accounts. This post is not a suggestion to buy, hold or sell any asset, and it is not financial or investment advice. Every figure is a record of what happened, taken from Hive-Engine at pool price (snapshot 2026-11-11 02:46 UTC). Your decisions are your own.

Once in production, PEPT players will get access to the LP Tracker based on their support in The PEPT Game. As a minimum, your account access will require you to be subscribed to The PEPT Game community and hold a minimum of one (1) PEPTide Value Added Token.

Learn before you earn anything.

Give some feedback, ask questions and upvote if you can to help grow a loving and caring community.

May positive pepEntropy be with you always.

The PEPT Game Impermanent Loss Strategy. | Ecency