Simulate PancakeSwap & SushiSwap Earnings Using Metrix Finance

The number one thing that strays people away from Decentralized Finance Liquidity Mining is a lack of data. At Metrix Finance our number one goal is to provide you with transparent insights into decentralized exchange liquidity pools.

We'll be taking a look at how you can accurately calculate potential earnings for PancakeSwap concentrated liquidity pools.

Let's Start Simulating!

We'll start on the Metrix Finance Simulate page, this is where we'll select the exchange, network, pair, and fee tier for our pool.

1. We'll start by selecting the exchange, in this example we’re going to use PancakeSwap.
2. After selecting the exchange, we'll move on and select our network. We're going to select BNB Chain because that's where the majority of PancakeSwap liquidity is.
3. Next up is the assets, we'll want to choose the assets we wish to provide liquidity for, we’re going to use BNB & CAKE.
4. Last but not least, the fee tier. This is the fee that is charged on trades that are executed through this concentrated liquidity pool. Metrix Finance will display where the majority of the liquidity is. In this case, it's 0.25%.
5. Now we hit Simulate!

It's Time to Analyze Data!

You'll be greeted with a wide array of analytics to look at, let's break down which ones you should focus on & what they mean for your liquidity position.

The section we'll want to pay attention to is the Liquidity Price Range. This will give a couple of options, let's hop in.

1. The first thing we want to do is decide if we are going to provide Full Range liquidity or Concentrated Liquidity.
2. In this scenario we’re going to use concentrated liquidity with a range of 120 - 150 (CAKE per WBNB), this is filled in under the MIN & MAX price input.
3. If we wish to analyze over a longer or shorter period of time, we can adjust the Calculation Range to factor in different amounts of data (in days).

The next section we'll look at is the Correlation Chart, here we will confirm that our liquidity is currently in range. The green lines represent your range while the pink line represents the current price of the liquidity pool.

Additionally, we'll want to confirm that the TVL & volume history has been consistent for the pool that we're analyzing. This helps us make sure that the APR displayed is accurate.

While we're on the topic of accuracy we want to make sure that the liquidity distribution for the pool is relatively symmetrical and the current price is near the top. This will help us confirm that the pool will deliver consistent returns & not see huge fluctuations.

Under the deposit amount section we can adjust the total capital that we will be deploying into the pool & view the required amount of each asset to deploy into the concentrated liquidity pool.

And finally! We can see the return we could obtain from the PancakeSwap concentrated liquidity pool. Metrix Finance showcases the potential return in terms of a dollar amount, but also a percentage amount. Additionally it shows the Daily, Monthly, and Yearly return.

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If you want to learn more about how you can become a liquidity provider for PancakeSwap, we created a full deep dive that’s published on YouTube.

Other Posts in This Series

How to Find the Best PancakeSwap Liquidity Pools

How to Track PancakeSwap Liquidity Pool Performance