Strategy #0000000141 · Market making and liquidity
Automated-market-maker liquidity provision
Enter initial pool value, relative price, cumulative fee percentage and costs; compare LP with holding.
A constant-product AMM trades automatically as reserve ratios change. Price moves alter the pool composition, creating impermanent loss versus simply holding; fees may offset some of it. Outcomes depend on the path, fee schedule, concentrated liquidity, arbitrage and contract risk. This page models only a simplified, equal-weight, full-range pool.
Omits concentrated liquidity, gas, MEV, dynamic fees, rebalancing, stablecoin depegs and smart-contract failures.
Three ways in
Understand the story. Then inspect the risk.
Start with a familiar situation, check the payoff, then test how the numbers change.
The idea · in two minutes
After a price-ratio change, how does constant-product pool value plus fees compare with holding?
A constant-product AMM trades automatically as reserve ratios change. Price moves alter the pool composition, creating impermanent loss versus simply holding; fees may offset some of it. Outcomes depend on the path, fee schedule, concentrated liquidity, arbitrage and contract risk. This page models only a simplified, equal-weight, full-range pool.
Enter initial pool value, relative price, cumulative fee percentage and costs; compare LP with holding.
Omits concentrated liquidity, gas, MEV, dynamic fees, rebalancing, stablecoin depegs and smart-contract failures.
- Input assumptionsEnter initial pool value, relative price, cumulative fee percentage and costs; compare LP with holding.
- Model outputOmits concentrated liquidity, gas, MEV, dynamic fees, rebalancing, stablecoin depegs and smart-contract failures.
Illustrative research examples only. They are not live signals or a recommendation.
The mechanics · payoff and exposure
V_{LP}/V_{hold}=\frac{2\sqrt{r}}{1+r},\quad V_{net}=V_{LP}+Fees-C
r is the final-to-initial price ratio; the pool starts with equal asset values and no liquidity changes.
Greeks: the directional intuition
- 模型
- Measures sensitivity to implied volatility.
- 合約
- Measures sensitivity to implied volatility.
- 執行
- Measures sensitivity to implied volatility.
V_{LP}/V_{hold}=\frac{2\sqrt{r}}{1+r},\quad V_{net}=V_{LP}+Fees-C
Practical context · published observations
Automated-market-maker liquidity provision: read the record with its caveats.
The chart uses the published figures or explicitly labelled study inputs below. A historical index or model replay is not the same as an investor’s realised account return.
Omits concentrated liquidity, gas, MEV, dynamic fees, rebalancing, stablecoin depegs and smart-contract failures. Source ↗ · Methodology ↗
Change assumptions and inspect the scenario
Inputs illustrate the strategy mechanics; they are not live quotes, forecasts or investment advice.
Variants · same family, different risk levers
Models, contract terms and implementation can change results.
Compare relevant mechanisms and execution assumptions.
| Related strategy | Relationship | What changes | New cost or risk |
|---|---|---|---|
| Base scenario | Manual inputs | A constant-product AMM trades automatically as reserve ratios change. Price moves alter the pool composition, creating impermanent loss versus simply holding; fees may offset some of it. Outcomes depend on the path, fee schedule, concentrated liquidity, arbitrage and contract risk. This page models only a simplified, equal-weight, full-range pool. | Omits concentrated liquidity, gas, MEV, dynamic fees, rebalancing, stablecoin depegs and smart-contract failures. |
| Conservative version | Higher cost/loss | Stress higher costs, larger losses or lower liquidity. | May lower scenario returns. |
| Validation version | Data review | Test model inputs with consistent contracts and timestamps. | Needs licensed, representative data. |
Omits concentrated liquidity, gas, MEV, dynamic fees, rebalancing, stablecoin depegs and smart-contract failures.
Read beyond the summary
References
Primary sources and research used to describe the strategy and its limits.