# Overview

DefiPlaza on Radix is a DEX specifically designed to reduce the risk of Impermanent Loss and help make DeFi sustainably profitable.&#x20;

Impermanent Loss is a huge problem for LPs. In the first six months of Uniswap V3, LPs lost a staggering $60M because while $200M in fees was generated, over $260M of IL occurred.

While most DEXes try to counter this problem by increasing trade volume by adding liquidity concentration and decreasing fees, we learned that to optimize LPs' profitability; we must focus on decreasing Impermanent Loss.

CALM reduces the risk of Impermanent Loss by treating trades that increase IL differently from trades that decrease IL. To do so, CALM keeps a record of each pair's IL and uses two distinct pricing functions, picking trade quality over trade quantity and favoring *LP* profitability over *trader* profitability.&#x20;

### How to use DefiPlaza on Radix

Our co-founder Timan walks you through DefiPlaza on Radix ans shows you *how to swap tokens*, *add liquidity* and *how to create a new pair* for a new token in this short video:

{% embed url="<https://www.youtube.com/watch?v=J8V1fG66Z54>" %}
