Uniswap · interactive mechanism simulation

Traders swap against pooled reserves priced by x·y=k. Liquidity providers deposit both assets and earn the swap fee; arbitrageurs trade the pool back to the external price whenever it drifts, capturing "loss-versus-rebalancing" (LVR) value that would otherwise accrue to LPs. An optional governance fee switch can redirect part of the fee away from LPs. Edit the parameters and watch the flywheel change.
Traders swap tokens Uniswap pool x · y = k, ETH / USDC 1 ETH ≈ 2,000.00 USDC TVL: $4,000,000 Arbitrageurs realign price, extract LVR Liquidity providers deposit both assets UNI governance fee switch: 0%
Swaps simulated
0
Pool TVL
$0
LP fees earned (cum.)
$0
LVR extracted by arbs (cum.)
$0
Protocol treasury (fee switch)
$0
Parameters — edit me
0.30%
1.6/s
3%
0%
Controls

Illustrative simulation. Defaults mirror the researched Uniswap mechanism (constant-product x·y=k pools, ~0.30% swap fee, permissionless LP deposits, arbitrage-driven price alignment, and the long-debated governance "fee switch"), but reserves, trade sizes and volatility are randomized for visualization — not live onchain data. The volatility-spike button illustrates the documented loss-versus-rebalancing (LVR) / impermanent-loss dynamic, not an actual exploit. Drag the sliders to explore how the flywheel responds. Part of The Onchain Experiment Atlas.