1inch Network

In this post, we will take a close look at the method of calculating profits and losses (PnL) used in the 1inch Wallet’s recent upgrade.For crypto traders and investors, accurate and up-to-date portfolio information is vital. Therefore, in the 1inch Wallet’s recently released new version for Android, the Portfolio feature was added. It allows users to run complete wallet-driven asset management, monitor real-time and overall token performance and optimize their investments, also displaying a full picture of their portfolio activity at any time.In the Portfolio feature, 1inch employs a formula for calculating a user’s PnL over any specific period of time. To facilitate calculations, three elements are required: a complete transaction history, the traded asset’s price for each transaction and the asset’s current value in USD.And this is the formula:PnL&#61; Current Value − Inflow Value &#43; Outflow ValueCurrent Value is the current worth of the user’s asset.Inflow Value is the total amount the user invested.Outflow Value is the total amount the user withdrew.ROI&#61; PnL / Inflow ValueLet’s consider a real-world example.Meet Bob, a blockchain trader. Bob made 3 trades:On January 1, 2023, he bought 100 tokens at $1 each.On March 10, 2023, he bought another 50 tokens at $2 each.On May 12, 2023, he sold 60 tokens at $2.5 each.Now, let&#39;s help Bob calculate his PnL and ROI.Suppose, the token’s current price is $1.5. Here&#39;s how Bob’s PnL is calculated:Current Value: (100 &#43; 50 - 60) * 1.5 &#61; $135Inflow Value: 100 * 1 &#43; 50 * 2 &#61; $200Outflow Value: 60 * 2.5 &#61; $150PnL &#61; 135 - 200 &#43; 150 &#61; $85ROI &#61; 85 / 200 &#61; 42.5%In simple terms, Bob invested $200, withdrew $150 and could withdraw another $135, making his total $285. His current gain is $85.ROI tells traders how much they earned per dollar invested. In this example, Bob gained $1.425 for each dollar he invested.Stay tuned to learn more about 1inch’s tech!

How 1inch calculates portfolio PnL

1inch Network

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