Simulate - Liquidity Analysis
Analyze potential results & outcomes before investing
The Simulate page is where the magic happens - transforming data into actionable insights for your liquidity provision strategy. After selecting a pool from the Discover page, you'll arrive here to model potential positions, analyze different scenarios, and optimize your approach before committing any capital.
Getting Started
There are multiple ways to get to the Simulate Pool page, one of them is through the main Simulate page where you can select the exchange, network, pair, and fee tier directly, view your recent simulations, and more.
Pool Information Header
At the top of the page, you'll find essential pool details:
Token Pair: Displayed prominently (e.g., WETH/USDC) with token icons for quick identification
Exchange: The DEX where this pool operates
Network: The blockchain network (Ethereum, Arbitrum, etc.)
Fee Tier: The pool's fee percentage (0.30% in example)
Version: The DEX version where this pool operates (v3 in example)
Contract Address: The pool's on-chain address with a copy function for easy access
The arrow/switch icon between the assets allows you to switch the pricing perspective. By default, you might see WETH priced in USDC (showing how many USDC equals one WETH). Click the arrows to flip this view and see USDC priced in WETH. This flexibility helps you think about the pool in whichever terms are most intuitive for your strategy. This follows a BASE/QUOTE format.
Two key actions are available in the top right:
Save to Portfolio: Stores your current simulation configuration for future reference
Change Pool: Returns you to pool selection to simulate a different opportunity
Estimated Fees Panel
The left panel displays your projected earnings based on your current simulation parameters:
Daily: Expected fees for a 24-hour period (shown as "24h")
Monthly: Projected monthly returns with percentage yield
Yearly (APR): Annualized percentage return based on your configuration
These estimates dynamically update as you adjust your deposit amount, price range, calculation timeframe, and method - giving you real-time feedback on how changes affect potential returns.
This Simulate Position Performance button opens a detailed modal comparing your LP position against alternative strategies, helping you understand profit/loss, opportunity costs, and earnings offset scenarios.
Liquidity Price Range Configuration
Calculation Timeframe (Days): Select how many days of historical data to use for return calculations (up to 365d). Best practice: Examine the volume history chart below to identify consistent periods that best represent expected future performance.
Calculation Method: Choose how to model your position's performance:
Current Price: Uses the current distribution of liquidity in the pool
Peak of Distribution (In-Range): Assumes positioning at the liquidity concentration peak
Average Liquidity (In-Range): Averages returns across all ticks in your range
Custom Price: Manually select a specific price point for modeling
Define your concentrated liquidity position with precision:
Min Price & Max Price: The lower & upper bound of your range
Shows both percentage from current price and exact price value
Adjust using the +/- buttons or by typing directly
Full Range Toggle: When enabled, this uses a range of 0 to ∞, assuming no concentrated range.
Match Ticks Toggle: When enabled, this automatically adjusts your range to match specific tick boundaries for optimal positioning.
Deposit Amount Section
Configure your investment amount and see the exact token breakdown:
Total Deposit: Enter your desired USD investment amount
Token Breakdown: Shows precisely how much of each asset you'll need:
Token 1 amount with percentage of total
Token 2 amount with percentage of total
The percentages indicate the initial split between assets based on your selected price range.
Create Position Button: Once satisfied with your simulation, this takes you directly to the DEX interface to execute your position.
Pool Analytics Section
Displays comprehensive pool statistics:
Price Volatility: Historical price movement
TVL: Current total value locked
AVG Daily Fees: Average fee generation
Daily Fees / TVL: Fee efficiency ratio
AVG Daily Volume: Trading activity
Daily Volume / TVL: Liquidity utilization
Correlation: Price correlation between assets
Geometric Mean: Middlepoint of your range
Visualization Charts
Liquidity Distribution
The upper right chart displays the current liquidity landscape:
Purple/Blue Bars: Show liquidity concentration at each price level
Green Vertical Lines: Min Price & Max Price for your set range
Pink Vertical Line: Current price of the pool
Purple Vertical Line: Visible when a custom calculation method is set
Tick Count: "Ticks in Range" indicates position granularity
Interactive Tooltips: Hover to see exact dollar amounts and asset quantities at each tick
This visualization helps you understand where other LPs are positioned and identify potentially profitable ranges with less competition.
Pool Price Chart
Below the liquidity distribution, this chart tracks the price ratio between assets:
Shows QUOTE (Token 2) per BASE (Token 1) asset pricing (not USD values)
Dotted lines indicate your selected min/max range and current price
Historical price movement helps assess range viability
Time period adjustable to match your analysis needs
Volume History
The bar chart displays daily trading volume and fees:
Purple Bars: Daily volume amounts
Hover Details: Reveals exact volume AND fee generation for each day
Statistical Summary: Shows MIN, AVG, and MAX values
Helps identify patterns and optimal calculation periods
Position Breakdown
This sophisticated visualization shows how your position behaves across different price scenarios (you can set custom price ranges & current price to simulate rebalances):
Three View Modes (toggle buttons in top right):
By Token: Shows individual token amounts at different prices
By Value: Displays QUOTE value of each token
By Total Value: Combined QUOTE position value
The chart features:
X-axis: Price range from your minimum to maximum
Y-axis: Token amounts or values
Crossing Lines: Illustrate the rebalancing of assets as price moves
Interactive Tooltip: Hover to see exact values at any price point
Simulate Position Performance Modal
Clicking the "Simulate Position Performance" button opens a comprehensive comparison tool:
Strategy A: HODL
Shows performance if you simply held the tokens
Displays token amounts and USD values
Percentage return clearly marked
Strategy B: LP
Your liquidity provision position performance
Shows token balances after price movement
LP Yield from fees (accumulated over selected days)
Opportunity Cost Analysis:
VS HODL: Direct comparison showing impermanent loss or gain (after fees)
Expressed in both USD and percentage terms
Helps quantify the trade-off between fee income and IL
Current Price: Shows current token prices in USD Future Price: Model different price scenarios with percentage changes
Adjust to see how various price movements affect your position
Input how many days of fees to include in calculations. The note tells you the break-even point where fee income compensates for any impermanent loss.
Best Practices
Start with the volume history - Look for consistent patterns before selecting your calculation timeframe
Consider volatility - Wider ranges for volatile pairs, tighter for stable pairs
Monitor the liquidity distribution - Less crowded areas might offer better returns
Use multiple calculation methods - Compare results to get a comprehensive view
Always run the Performance Simulation - Understanding IL scenarios is crucial for risk management
Save promising simulations - Build a portfolio of potential positions to compare
The Simulate page transforms complex DeFi mechanics into clear, actionable insights, ensuring you enter positions with full understanding of both opportunities and risks.
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