Liquidity Removal Stress Test

    Measure how the same token exit deteriorates when proportional pool depth disappears.

    Data basis
    Formula
    Model

    Price versus depth

    Proportional LP removal does not itself move spot price. It reduces both reserves, so the next trade has greater price impact.
    Stress assumptions

    Total balanced V2 pool value.

    Pre-removal spot price.

    Same gross token sale in both states.

    Proportional withdrawal from both reserves.

    Applied to the token input.

    Exit deterioration
    Remaining liquidity
    $500,000.00
    Spot after removal
    $1.00
    Unchanged before the stressed exit
    Proceeds before
    $9,775.08
    -3.88% post-trade spot impact
    Proceeds after
    $9,587.64
    -7.53% post-trade spot impact
    Proceeds lost
    $187.44
    1.92% worse execution