Independent research library, published by SudoAI
Understand a liquidity pool before you fund it.
59 guides and 5 calculators for liquidity providers. Every formula is published, every material claim is cited to a primary source, and every page shows when it was last reviewed.
Most readers arrive with one of three questions.
Model the position before you fund it.
Each calculator states its formula and its limits on the same page. Inputs stay in your browser: no wallet connection, no sign-up.
Impermanent Loss Calculator
Compare 50/50, weighted, and concentrated ranges against holding, then share the exact scenario by URL.
Runs in your browserLP Profit & Return Calculator
Put fees, divergence and gas on one ledger and compare the result against holding the tokens.
Runs in your browserLiquidity Pool Fees, Rewards & APR Calculator
Keep trading-fee APR and incentive APR separate before combining them net of gas.
Runs in your browserUniswap v3 & Concentrated Liquidity Calculator
Set a bounded range to see capital efficiency, token mix at each bound and fees against holding.
Runs in your browserMeteora DLMM Calculator
Model discrete bin prices, allocation shapes, base and variable fees, and divergence against holding.
Runs in your browserMethodology and test vectors
The formulas, assumptions and exclusions behind every calculator, with the fixed test cases the automated suite checks against.
Reviewed with each formula changeThe mechanism first, then the decision.
Begin with how a pool moves, then move on to what a position costs and how to judge one before supplying it.
Impermanent Loss Explained: Why Pools Trail Simply Holding
Why a pool position falls behind simply holding, how much at each price move, and the cost volatility adds that fees have to cover.
| Price move since deposit | Loss versus holding, before fees |
|---|---|
| Up 25%, or down 20% | -0.62% |
| Up 50%, or down a third | -2.02% |
| Doubles or halves | -5.72% |
| Triples | -13.40% |
| Up 5× | -25.46% |
What Is a Liquidity Pool? How DeFi Liquidity Pools Work
A plain-English guide to liquidity pools: how a pool sets its price, why deep beats big, what you really earn, and what you take on when you deposit.
Read the guideHow to Evaluate a Liquidity Pool: A Five-Part Research Framework
Five questions that tell you whether a pool is worth your money, in the order that matters, with the arithmetic that settles most cases in under a minute.
Read the guideFind the guide for your question.
- LP MechanicsHow to Provide Liquidity: A Mechanism-First Walkthrough
- FoundationsAutomated Market Makers Explained: How an AMM Actually Works
- FoundationsLiquidity Pool Tokens Explained: What an LP Position Represents
- FoundationsTypes of Liquidity Pools: Matching the Curve to the Pair
- Risk & ResearchImpermanent Loss Explained: Why Pools Trail Simply Holding
- Risk & ResearchThe Impermanent Loss Formula: How to Calculate IL Step by Step
- Risk & ResearchHow to Avoid Impermanent Loss (and What Each Method Costs)
- Risk & ResearchLiquidity Pool Risks: A Complete Framework for LP Due Diligence
- LP MechanicsConcentrated Liquidity Explained: Range, Capital Efficiency, and Risk
- LP MechanicsOut-of-Range Liquidity: Why an LP Position Stops Earning Fees
- FoundationsAPR vs APY in DeFi: How to Read a Pool Yield Quote
- FoundationsLiquidity Pool vs Staking: Two Different Payoffs
- FoundationsSlippage and Price Impact: What a Swap Actually Costs
- AdvancedYield Farming Explained: Fee Income, Emissions, and Dilution
- AdvancedUniswap v3 vs v4 Liquidity: What Actually Changed for LPs
- FoundationsLiquidity Pools for Beginners: Five Decisions, In Order
Four tracks, one model of how liquidity behaves.
Start with the system
Pools, AMMs, LP tokens and TVL, explained from the mechanism up.
14 guidesTrack 2: LP MechanicsFollow the position
Fees, concentrated ranges, stable pools and what happens out of range.
17 guidesTrack 3: Risk & ResearchPrice the trade-off
Impermanent loss, contract exposure, MEV and pool due diligence.
16 guidesTrack 4: AdvancedRead the market
Incentives, market-making logic, cross-chain liquidity and analytics.
12 guidesThe guides most recently checked against their sources.
Is Providing Liquidity Profitable? The Full Arithmetic
It depends on numbers you can get before depositing, and almost nobody gets them. Here is the inequality, every term in it, and two positions worked in full.
Meteora DLMM Strategy: Bin Step, Shape and When Positions Stop Earning
How to choose a bin step and shape on Meteora DLMM, what the volatility accumulator does to your fee rate, and rebalancing rules for a fast Solana market.
Raydium Liquidity Pools: CLMM, CPMM and Choosing Between Them
How Raydium's concentrated and constant-product pools differ, what a CLMM position holds at each end of its range, and the Solana checks to run first.
APR vs APY in DeFi: How to Read a Pool Yield Quote
Two pools quoting different numbers can pay exactly the same. How to convert any quote to a comparable figure, and the six costs no headline rate includes.
Balancer Weighted Pools: How 80/20 and Multi-Asset Pools Work
Why an 80/20 pool sells less of your token on the way up, how weighted pricing works, what a liquidity bootstrapping pool does, and what Balancer v3 changed.
Curve v2 Explained: Cryptoswap, Internal Oracles and TriCrypto Pools
How Curve v2 moves its own liquidity to follow the market, why it only pays for that out of fees, and when a TriCrypto pool is and is not the right place to be.
One byline, a public process, and a correction route.
Draft
Guides are written by the LiquidityPools Editorial Team and may use AI assistance to organise, draft or revise text. No guide is attributed to a fictional expert or an invented credential.
Check
Material claims are checked against the numbered sources at the end of each guide: protocol whitepapers and documentation, peer-reviewed and preprint research, and public-sector analysis.
Review and date
The SudoAI team reviews each guide before publication. The visible review date changes whenever a source, claim, mechanism or correction is reviewed.
Found an error?
Send the guide URL, the claim and your evidence. Substantive corrections update the guide and its review date.
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- research@liquiditypools.app
- Policy
- Editorial and corrections policy
- Publisher
- SudoAI
- Source
- github.com/SudoAI-App/LiquidityPool