Uniswap V2 Simulator

Simulate standard AMM pool performance and impermanent loss.

All defi tools

Pool Strategy

Deposit Amount ($)

Price at Deposit

Pool APR (%)

Time (Days)

V2 Mechanics

V2 uses x*y=k. Liquidity is spread 0-∞, lower efficiency but zero maintenance.

Position Value

$10,246.95

Total: $10,370.24

Impermanent Loss

$-3.049234

-0.03% vs HODL

Fees & ROI

$123.29

1.23% Yield

Liquidity Curve Simulation

Sim Price

Composition2.440 X / 5123.5 Y

Net ROI3.70%

PnL ($)$370.24

TypePassive

Methodology

We use the standard x*y=k formula to determine token counts at different price points. ROI accounts for compounded trading fees and price divergence vs initial deposit.

Constant Product AMM

x * y = k. This formula ensures that as price increases, the pool automatically sells the appreciating asset for the depreciating one, maintaining constant liquidity.

Infinite Range

V2 positions are never 'out of range'. Your liquidity is spread from 0 to infinity, making it the ultimate 'set and forget' strategy for long-term holders.

Arbitrage Profits

LP value changes not because of magic, but because arbitrageurs trade against your position when external market prices deviate from the pool price.

IL Symmetry

Impermanent loss in V2 is symmetric. A 50% price drop results in the same IL as a 100% price increase (approx -5.7% relative to HODL).

Frequently Asked Questions

What is Uniswap V2 and how does it work?

Uniswap V2 is a decentralized exchange that uses a 'Constant Product' formula (x * y = k). LPs provide two assets of equal value, and the protocol automatically manages the trades to keep the product constant, effectively acting as an automated market maker.

Why does my position value change differently than just holding?

When you are an LP, the protocol is constantly buying the underperforming asset and selling the outperforming one to keep the pool balanced. This leads to 'Impermanent Loss' (IL) compared to just holding the assets in your wallet.

Is Impermanent Loss always permanent?

No. It is called 'impermanent' because if the price returns to the exact point where you deposited, the loss disappears. It only becomes 'permanent' when you remove your liquidity from the pool.