Simulate - Position Analysis

Analyze potential results & outcomes before investing

Simulate is Metrix Finance's flagship analytic tool, specifically designed to provide liquidity providers with institutional-grade insights into potential LP positions. This powerful feature allows you to model potential outcomes before committing capital, helping you make informed decisions by examining historical data, projecting returns, and analyzing risk factors across various market conditions.

Accessing Simulate

You can access the Simulate tool through multiple pathways:

• From the main navigation menu at the top of the Metrix Finance dashboard.

• By clicking the Simulate button next to any pool in the Discover section.

• Via the Track tool when examining performance of your existing positions.

Every simulation can be saved to your portfolio. The Build feature of Metrix Finance (Pro users only) will give you an unified view of all your saved positions. Check out Build documentation for more details.

Getting Started with Simulate

Step 1: Select Your Pool

If you use a Simutale button directly, the associated pool is already selected. The Simulate tab requires you to first select a liquidity pool for analysis. Do this by using one of the following methods:

• Using the dropdown selection fields to choose an exchange (Uniswap, Orca, etc.), network (Ethereum, Solana, etc.), token pair, and fee tier.

• Directly pasting a specific pool contract address into the input field.

If you are a beginner, using a Simulate button on the discover page is an easier and recommended entry point.

Metrix Pro Features:

• Ability to paste in a contract address to easily pull up the pool.

Step 2: Configure Your Analysis Parameters

Once you've selected a pool, you are on the simulation page. At the top of the page, you have all info regarding the selected pool. You can switch the asset pair to revert all the quotes and charts on the page. Quoting like WBTC/X or WETH/X are most of the time easier to read and interpret.

Below that, you'll need to configure several key parameters:

1. Deposit Amount

• Enter the total capital you're considering allocating to this position.

• Metrix Finance will automatically calculate the optimal token split based on your chosen price range.

• The interface shows exactly how much of each token you'll need to provide and the dollar amount.

2. Calculation Timeframe

• Select how many days of historical data to include in your analysis (e.g., 30, 90, 365 days).

• This setting affects all calculated metrics including APR projections, price volatility, volume analysis, and more.

• Remember to use this parameter appropriately according to your strategy. Don't simulate over a short period (e.g. 7 days) if you can't actively manage your positions.

Metrix Pro Features:

• Adjust the calculation timeframe to more than 90 days.

3. Liquidity Price Range

• Set your Min Price and Max Price to define your concentrated liquidity range.

• Adjust the range using the sliders or by manually entering specific values.

• Use the Match Ticks button to snap to the closest available ticks on the exchange. This will give you really precise quantities of the assets to be deployed in the pool.

4. Calculation Method

This will help you refine the calculations, mostly in case were the liquidity is not evenly distributed in the pool.

The different options are the following:

• Current Price uses the current price. This is the default & most used setting.

• Custom Price allows you to choose a specific price. Meant for experienced users.

• Peak of Distribution (In-Range) uses price where liquidity is as its highest in your range. It is basically a "worst-case" simulation scenario.

• Average Liquidity (In-Range) uses the average liquidity per price using prices only in your range. This is very useful for unevenly distributed pools.

This allows you to simulate performance at different price points along the liquidity curve. The more liquidity on a tick, the lower your share of that tick is which will display a lower APR.

Metrix Pro Features:

• Ability to adjust the calculation method to something different than Current Price.

Step 3: Advanced Configuration

• The settings button allow you to customize current prices if needed.

• Simulate Position Performance will help you to test how your position would perform under different market conditions. Check Simulate Performance if you want more info.

Metrix Pro Features:

• Ability to custom the current prices of assets in settings.

• Simulate the position performance across different market conditions.

Key Components and Features

Estimated Fees Section

This section provides detailed projections (24h, Monthly, and Yearly) of potential earnings. All are based on historical data.

Estimated fees are impacted by:

• Historical trading volume within your specified calculation timeframe.

• Your position's price range width relative to the full range.

• Current liquidity distribution at your chosen calculation price.

Simulate Position Performance

This feature allows you to test how your portfolio or position would perform under different market conditions.

• Strategy A will show you the outcome if you simply held the tokens, whereas Strategy B will show you the outcome of LPing.

• You can customize the future asset prices & days of active position to determine potential outcomes.

• The better-performing strategy will be highlighted, and you will see information including LP Yield, Divergence Loss, vs HODL, and more.

Deposit Amount Section

This section helps you understand exactly what you need in order to deploy your position:

• Shows the split between the two tokens based on current price and your selected range.

• Displays the dollar value equivalent of each token amount.

• When possible, Create Position button takes you directly to the exchange to deploy your capital with these parameters.

Liquidity Distribution Visualization

This critical graph displays where liquidity is concentrated within the pool:

• X-axis represents the price of the pool.

• Y-axis shows the amount of liquidity at each price point.

• Custom price and current price are marked with vertical lines along with your range.

This graph is really useful to figure out if the liquidity is evenly distributed in the pool. If not, use the Calculation Method to refine the calculations accordingly.

Metrix Pro Features:

• View the dollar amount of liquidity per price point.

• Zoom in and out on the liquidity distribution chart.

Pool Price Chart

This interactive chart shows historical price movement:

• Tracks how the asset pair's price has changed over your selected time period.

• Helps identify support and resistance levels.

• Assists in determining optimal range boundaries.

• Includes MIN, MAX, PRICE, and AVG indicators for quick reference.

Metrix Pro Features:

• Zoom in and out on the pool price chart.

Volume History

This bar chart visualization shows daily trading activity and fees:

• Displays trading volume and fees for each day in your selected calculation range.

• Hover functionality reveals detailed volume and fee data for specific days.

• Helps identify trading patterns and potential high-fee periods.

• Includes MIN, MAX, PRICE, and AVG indicators for quick reference.

Use the Volume History graph with different Calculation Timeframe to make sure that the actual volume in the pool is not abnormal (higher or lower than usual).

Metrix Pro Features:

• Zoom in and out on the volume history chart.

Reward History

This bar chart visualization shows daily rewards for a staked position:

• Displays rewards for each day in your selected calculation range.

• Hover functionality reveals detailed reward for specific days.

• Helps identify emission patterns and potential high-reward periods.

• Includes MIN, MAX, PRICE, and AVG indicators for quick reference.

Use the Reward History graph with different Calculation Timeframe to make sure that the actual rewards in the pool are not abnormal (higher or lower than usual).

Metrix Pro Features:

• Zoom in and out on the reward history chart.

Pool Information

Just below your parameters, you can find the same pool information that’s displayed on Discover along with the Geometric Mean.

• Geometric Mean: The geometric mean is the middle-point of your range where you will have 50% of each asset (equal dollar amount).

Metrix Pro Features:

• Ability to see price volatility, correlation, and geometric mean.