> For the complete documentation index, see [llms.txt](https://docs.clipper.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.clipper.exchange/introduction/clippers-benchmark-no-impermanent-loss.md).
# Clipper's Benchmark: No Impermanent Loss
Clipper's pools act like a daily rebalancing portfolio composed of roughly [1/3 ETH, 1/3 WBTC, and 1/3 stablecoins](https://snapshot.org/#/theadmiraldao.eth/proposal/0xef7eee23d3b3357cee5d5f0c7b08bc8934b1993b35b0b655226c6572c584271a) (with zero transaction costs for rebalancing). **This rebalancing strategy results in no impermanent loss for LPs.**
### How Clipper Stacks Up Against the Benchmark
Clipper's benchmark is no impermanent loss. It achieves this through tracking a theoretical costless DRP.
If we look at a sample of Clipper's performance from September 11, 2022 through October 10, 2022, we see that it closely tracks the DRP while staying slightly ahead of it--finishing the interval almost 40 basis points ahead.
Clipper was within 1 bps of the DRP for more than three-quarters of the days in the period. For those days where Clipper and the DRP diverged by more than 1 bps, Clipper was in the leading position more than two-thirds of the time (23% vs. 10% of days).
The reason for return divergence is that Clipper’s [FMM](/introduction/how-clipper-makes-money-for-lps.md#fmm-architecture) 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.
Clipper's close tracking of the DRP is what enables it to hit its no impermanent loss benchmark.
👉 Visit Clipper's [benchmark page](https://clipper.exchange/data/benchmark) for real-time performance.