Simulate Performance

Simulate Performance answers the question behind every LP position: if price moves to X, what happens to my money? It opens from the Simulate page and turns your inputs (deposit, price range, estimated yield) into a live profit and loss curve you can explore by dragging a simulated price across it.

The PnL curve

The curve plots your net PnL at every price. Drag the white handle to test a future price and every number below the chart recalculates for that scenario.

• The blue and purple markers are your range bounds. They match the range you set on the Simulate page and use the same colors everywhere in the app.
• The dashed Current line is the live pool price. The simulated price snaps back to it when you reset.
• Inside the range the position earns fees and the curve bends with the changing token mix. Outside the range the position sits fully in one token, so the curve follows that token's price alone.

The panel works in either quote direction. Flip the pair next to the price above the chart and the curve, markers, and composition all flip together. The flip also chooses which side your drag moves: the base asset's dollar price changes while the quote asset is held, noted under the chart. On crypto to crypto pairs this is how you pick which asset absorbs the move; for exact two-sided scenarios, set each price directly with the Token prices toggle.

Volatile pairs: who moved, the base or the quote?

On a crypto and stablecoin pool the drag reads naturally: the stablecoin sits at one dollar, so moving the pool price means moving the volatile asset. On a volatile pair like LINK/AAVE the chart moves the pool ratio, and a ratio change alone cannot say which asset's dollar price moved. The same move could be one asset falling, the other rising, or both drifting at once.

The panel resolves this with an anchor rule, stated in the note under the chart: the quote asset's dollar price is held and the base absorbs the whole move. Flip the pair to choose the other side, or set both prices exactly with the Token prices toggle.

The decomposition only reframes the dollars. Your token amounts, the LP vs. HODL comparison in percent, and days to cover depend on the ratio alone, so they are identical whichever asset you anchor. Absolute figures, including the cost basis dollars in the composition breakdown, follow the anchor you picked.

Assess profit and loss

The Performance section shows the outcome at the simulated price:

• Deposit is your starting capital. It stays in sync with the Deposit Amount on the Simulate page.
• Net PnL is the change in total position value versus the deposit, including the estimated fees earned.
• Total value is what the position would be worth at that price.

Composition and cost basis

The Composition section shows how your deposit splits between the two tokens at the simulated price, as both token amounts and USD value. As price moves through your range, the pool converts one token into the other, so the mix at your target price is not the mix you deposited.

Hover a segment for the breakdown. The USD figures in the popup are cost basis: what you effectively paid for what you would hold, valued at deposit-day prices rather than at the simulated price. Comparing cost basis with market value at the target is how you separate conversion effects from price effects. The mechanics are the same as on tracked positions, covered in Asset conversion.

Opportunity cost

Providing liquidity competes against the simplest alternative: just holding the tokens you deposited. The Opportunity Cost section quantifies that trade for the simulated price.

• Estimated Yield (APR) is the fee yield assumption, prefilled from the pool's history using your chosen calculation method. It is editable, and the reset arrow returns it to the pool-derived value.
• Time In-Range is how long the position earns fees at that APR. The slider caps at your projection horizon.
• Estimated Yield Earned is the fee income for that time in range.
• LP Opportunity Cost is HODL value minus LP value excluding fees. This is the impermanent loss of the position at the simulated price: what the in-pool conversions cost you compared to holding. Hover the number to see both legs.
• LP vs. HODL is the bottom line with fees included. Positive means the position beats holding at that price and time in range.

Days to cover opportunity cost

Impermanent loss is not a verdict, it is a cost that fee income pays back over time. The Days to cover opportunity cost readout divides the opportunity cost by the daily fee yield: the number of in-range days after which the fees have fully paid for the impermanent loss at the simulated price.

A worked example

Deposit $1,000 into a WETH/USDC pool and test a price 15% below current, with a 50% APR and 14 days in range:

• Holding the original tokens would leave $925.00 (HODL value).
• The LP position, excluding fees, would be worth $901.50. The difference of $23.50 is the LP opportunity cost (impermanent loss).
• 14 days of fees at 50% APR earn $19.18, which is not enough yet: LP vs. HODL is -$4.32.
• Daily yield is about $1.37, so covering the $23.50 takes about 17.2 in-range days. The panel rounds up and shows >18D.

Stay in range four more days and the same position flips ahead of holding. That is the practical use of this panel: not to predict price, but to see how long a position must work, and how wide it must be, for fees to beat the cost of providing liquidity.