# 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. 

<figure><img src="/files/iSgcXGgpr2fdfYrGRmIo" alt="" width="375"><figcaption></figcaption></figure>

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).&#x20;

<figure><img src="/files/Mq008YXyvAtcaDogx3hR" alt="" width="563"><figcaption></figcaption></figure>

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.&#x20;

👉 Visit Clipper's [benchmark page](https://clipper.exchange/data/benchmark) for real-time performance.&#x20;


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.clipper.exchange/introduction/clippers-benchmark-no-impermanent-loss.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.