AMM divergence versus holding

How does a fee-free 50/50 constant-product liquidity position differ from holding its original two assets after a token-price change?

This experiment lets you change financial assumptions and inspect the resulting calculation. The starting values are illustrative, and no live market feed is required. Compare an alternative, search a stated range for a failure condition, and inspect the assumptions behind the result. The calculation describes the selected model, rather than predicting markets or recommending a transaction. You can run this experiment without signing in and preserve a replayable receipt.

Starting assumptions.

What the result establishes.

The result is conditional on the input values, financial conventions and model version. Calculations are performed by the same Go engine in the browser and local service.

• Illustrative user assumptions; no live market data or calibrated forecast.
• Results apply only to the declared mechanisms, horizon and search bounds.
• Exact declared model: x*y=k, initially equal USD values, one fixed-USD quote asset, immediate arbitrage, constant liquidity ownership and zero trading fees or incentives. This is not concentrated liquidity or a protocol return forecast.
• Initial investment must be positive and the final/initial price ratio must be between 0.01 and 100. The displayed price path is an assumed linear interpolation. Values are not settled cash. Source: https://app.uniswap.org/whitepaper.pdf

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