Simulate - Market Analysis
The Simulate page for Lending & Borrowing is where strategic planning meets risk management. Unlike simulating individual assets, this powerful interface allows you to model entire lending market positions - analyzing complete portfolios across protocols like Aave V3 Ethereum. Here you can construct complex lending strategies, optimize capital efficiency, and understand liquidation risks before deploying capital.
Getting Started
When you arrive at the Simulate page, you're presented with a comprehensive market simulation environment. The interface defaults to showing an empty state, ready for you to build your lending and borrowing strategy from scratch. At the top, you'll see the selected market (e.g., "Aave V3 Ethereum") with protocol and network icons for quick identification.
Market Information Header
At the top of the page, you'll find:
Market Name: The specific lending market you're simulating (e.g., Aave V3 Ethereum)
Protocol Icon: Visual identifier for the lending protocol
Network Icon: The blockchain network where this market operates
Change Market Button: Allows you to switch to different lending markets for comparison
Core Performance Panels
The interface displays three critical metrics panels that update dynamically as you build your position:
Estimated Interest Panel: This panel shows your projected interest economics with a tabbed view:
Supply Tab: Shows interest earned from supplied assets
Monthly earnings in USD
Monthly percentage return
Yearly (APY) projection
Borrow Tab: Displays interest costs from borrowed assets
Monthly costs in USD
Monthly percentage cost
Yearly (APY) expense
Net Tab (default view): The combined view showing net interest
Net monthly profit/loss (-$18.97 in example)
Net monthly percentage (-0.08%)
Net yearly APY (-0.96%)
The Simulate Position Performance button opens detailed scenario analysis for the entire market.
Net Worth Panel
Displays your overall position value and key metrics:
Total Supplied: The sum of all supplied assets
Shows the APY earned on supplies
Total Borrowed: The sum of all borrowed assets
Shows the APY paid on borrows
Available to Borrow: Maximum additional borrowing capacit
Percentage of capacity used
Net Worth: Total Supplied minus Total Borrowed
Health Factor Panel
Critical risk metrics for your position:
Health Factor: The key liquidation metric
Above 1.0 = Safe from liquidation
Below 1.0 = Subject to liquidation
Higher is safer (more buffer)
Current LTV (Loan-to-Value): Current borrowing relative to collateral
Shows how leveraged your position is
Liquidation Threshold: The LTV at which liquidation occurs
When Current LTV reaches this, liquidation begins
Max LTV: Maximum borrowing capacity
The highest LTV allowed for new borrows
Position Configuration
The main workspace is divided into two sections:
Supplied Assets
Build your collateral position:
Add Asset Button: Opens asset selector to add supplies
Choose from available market assets
Enter amount to supply
View real-time APY for each asset
Asset Display: Each supplied asset shows:
Token icon and symbol
Amount supplied
USD value
Current supply APY
Action buttons (edit amount, remove)
Borrowed Assets
Configure your borrowing strategy:
Add Asset Button: Opens asset selector to add borrows
Choose from available assets
Enter amount to borrow
View current borrow APY
Asset Display: Each borrowed asset shows:
Token icon and symbol
Amount borrowed
USD value
Current borrow APY
Action buttons (edit amount, remove)
Calculation Timeframe
Located between the supply and borrow sections:
Adjustable from 1 to 365 days
Default: 14 days
Controls the period for average APY calculations
Affects all displayed metrics and projections
Asset Details Modal
Clicking the info icon next to any asset opens a comprehensive analysis modal:
Supplied and Borrowed Chart: Shows market-wide metrics for the specific asset.
Supplied Amount: Total market supply over time
Borrowed Amount: Total market borrows over time
Visualizes supply/demand dynamics
Daily APY Chart: Breaks down the historical rates over time.
Supply APY: Daily supply rates
Borrow APY: Daily borrow rates
Identifies rate volatility and trends
Position Health Section: Showcases live market statistics.
Current Total Liquidity: Total supplied liquidity
Current Borrowed: Total borrowed liquidity
Current Total Available: Current available liquidity
Historical Averages Section: Uses calculation timeframe to calculate averages.
Avg Total Supplied: Average supplied liquidity
Avg Total Borrowed: Average borrowed liquidity
Avg Total Available: Average available liquidity
Risk Parameters Section: Critical risk metrics for the asset.
Avg Supply APY: Average APY for supplying liquidity
Avg Borrow APY: Average APY for borrowing liquidity
Max LTV: Maximum you can borrow against this asset
Liquidation Threshold: The LTV in which your position will be liquidated
Avg Utilization Rate: The average utilization rate for the market
Market Overview Section
The bottom section provides market-wide context:
Market Table:
Avg Supply APY: 1.04%
Total Supplied: $997.82m
Available Liquidity: $594.83m
AVG Borrow APY: 2.59%
Total Borrowed: $402.99m
Utilization Ratio: 21.44%
Market Supplied and Borrowed Chart
Supply APY Line: Historical supply rates over time
Borrow APY Line: Historical borrow rates over time
Toggle each line on/off for clarity
Helps identify rate trends and optimal entry points
Best Practices
Start with Collateral: Always add supplied assets before borrowing to establish your collateral base
Monitor Health Factor: Keep it above 1.5 for safety; above 2.0 for conservative strategies
Understand LTV Limits: Different assets have different borrowing power
Calculate Net Interest: Ensure borrowing costs don't exceed earning potential
Test Scenarios: Use the Performance Simulation to model market downturns
Consider Utilization: High utilization can lead to rate spikes
Review Historical Data: Click asset details to understand rate volatility
Plan for Gas: Factor in transaction costs for your strategy
The Simulate page bridges the gap between idea and execution, ensuring you enter lending markets with complete understanding of risks, rewards, and optimal positioning strategies.
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