# 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="https://2356525178-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MZxPgaEAx6qALhvK9dz%2Fuploads%2FbECx2rMi0JTKgVaHXd7X%2Fdownload-5.png?alt=media&#x26;token=b2f0ed8c-1f39-4350-8627-cdb0519863ae" 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="https://2356525178-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MZxPgaEAx6qALhvK9dz%2Fuploads%2F7P0R7xJ8zyng2NBT4cTm%2FScreenshot%202023-06-05%20at%205.25.50%20PM.png?alt=media&#x26;token=b720d778-bb0e-43a1-9f5b-8102f55ea366" alt="" width="563"><figcaption></figcaption></figure>

The reason for return divergence is that Clipper’s [FMM](https://docs.clipper.exchange/how-clipper-makes-money-for-lps#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;