Simulating a WETH/USDC Liquidity Position Against Holding

Summary

The document reports a one-day replay of a WETH/USDC concentrated-liquidity position with a 0.05% pool fee. It describes a simulated position bounded by a price range and tracks its token composition, collected and uncollected fees, range activity, rebalancing, and value compared with simply holding the assets. No rebalancing occurred during the reported run, and all recorded trades were within the active range.

The displayed position value was 10,063.74 USDC versus 10,051.35 USDC for holding, a relative gain of 12.39 USDC. The interface also reports 17.45 USDC in cumulative fees and an annualized fee rate of 46.33%. These are results from a brief simulation over a particular historical block interval, not evidence that the strategy will perform similarly in other conditions. The page gives little detail about the simulator’s assumptions, fee calculation, transaction costs, or how the selected liquidity range was chosen.

Key ideas

• The simulator models a WETH/USDC concentrated-liquidity position bounded by a specified price range.
• It records token balances, fee income, rebalancing activity, and position value over the replay.
• The reported position value exceeded the value of holding the assets by 12.39 USDC in this run.
• The simulation covered about 33 hours and reported no rebalancing, limiting what can be inferred about longer-term performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.