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Liquidity pool simulator

See what happens to your money when you provide liquidity instead of simply holding. Compare claiming your fees with compounding them.

Try a scenario

Just holding the coins—
Pool, claiming fees—
Pool, compounding fees—
Impermanent loss—

Move across the chart to see values on a date.

Claim or compound?

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Claiming takes your fees out as cash, so they stop earning. Compounding adds them back to the pool so next month's fees are earned on a bigger balance. Compounding helps most when the APR is high and the time is long, and it costs gas in real life.

What is impermanent loss?

When prices move, the pool automatically sells the coin that's rising and buys the coin that's falling. You end up with less than if you'd just held both. The loss is "impermanent" because it shrinks if prices return to where they started.

This is a simplified model of a standard 50/50 pool: constant fee APR, steady price change over the period, no gas costs or taxes. Real pools, especially concentrated-liquidity ones, behave differently. Educational only, not financial advice.

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