Why LP Can Lose vs HODL Even When Both Tokens Rise

I’ve seen this happen: both tokens in a pool can rise in USD terms but you still suffer impermanent loss because impermanent loss depends on the change in the price ratio between the two assets, not their absolute USD moves.

In a 50/50 LP, if one token increases much more than the other, the pool rebalances you into less of the outperforming asset, producing an impermanent loss versus HODLing the original amounts even though both are up.

Your ~$6,300 in rewards lower your net loss, but if your LP vs HODL comparison still shows -3.45% it means the impermanent loss exceeded the fees and rewards received so far. Impermanent loss can reverse if price ratios revert before you withdraw.