How to Fill This Out:
- Copy your allocations from portfolio_worksheet.html
- For each strategy, calculate the 1-year return using:
- APR gains: Allocation × APR
- IL losses: For LP only (see il_calculation_guide.html)
- Price impact: For ETH-denominated positions
- Sum all net returns to get total portfolio gain/loss
- Calculate percentage return: (Total Net Return / $10,000) × 100
Scenario A: Bull Market (ETH +50%)
ETH price: $2,000 → $3,000
Key Facts for This Scenario
- ETH/USDC LP: -2.02% IL | Price exposure: +25% (50/50 split gains half of ETH's +50%)
- ETH Staking: Full +50% price gain (100% ETH exposure)
- USDC strategies: No price impact
- Yield Farm: Assume survives (80% probability)
| Strategy | Allocation | APR Gain | IL Loss | Price Impact | Net Return |
|---|---|---|---|---|---|
| 1. ETH/USDC LP (30%) |
Allocation × 0.30
|
× (-0.0202)
|
Allocation × 0.25
|
||
| 2. USDC Lending (8%) |
Allocation × 0.08
|
No IL
|
No price risk
|
||
| 3. ETH Staking (4%) |
Allocation × 0.04
|
No IL
|
Allocation × 0.50
|
||
| 4. Yield Farm (100%) |
Allocation × 1.00 × 0.8
|
Complex IL
|
Variable exposure
|
||
| 5. Hold USDC (0%) |
0% APR
|
No IL
|
No price risk
|
||
| TOTAL NET RETURN (Scenario A) | |||||
Percentage Return:
(Total Net Return / $10,000) × 100
Scenario B: Sideways Market (ETH 0%)
ETH price: $2,000 → $2,000
Key Facts for This Scenario
- ETH/USDC LP: 0% IL | No price impact
- ETH Staking: No price gain/loss
- All strategies: Returns = APR only
- Yield Farm: Assume survives (70% probability)
| Strategy | Allocation | APR Gain | IL Loss | Price Impact | Net Return |
|---|---|---|---|---|---|
| 1. ETH/USDC LP (30%) |
Allocation × 0.30
|
0% IL
|
No change
|
||
| 2. USDC Lending (8%) |
Allocation × 0.08
|
No IL
|
No price risk
|
||
| 3. ETH Staking (4%) |
Allocation × 0.04
|
No IL
|
No change
|
||
| 4. Yield Farm (100%) |
Allocation × 1.00 × 0.7
|
Variable IL
|
No change
|
||
| 5. Hold USDC (0%) |
0% APR
|
No IL
|
No change
|
||
| TOTAL NET RETURN (Scenario B) | |||||
Percentage Return:
(Total Net Return / $10,000) × 100
Scenario C: Bear Market (ETH -50%)
ETH price: $2,000 → $1,000
Key Facts for This Scenario
- ETH/USDC LP: -5.72% IL | Price exposure: -25% (50/50 split loses half of ETH's -50%)
- ETH Staking: Full -50% price loss (100% ETH exposure)
- USDC strategies: No price impact (safe haven)
- Yield Farm: Likely failed (50% probability of rug pull)
| Strategy | Allocation | APR Gain | IL Loss | Price Impact | Net Return |
|---|---|---|---|---|---|
| 1. ETH/USDC LP (30%) |
Allocation × 0.30
|
× (-0.0572)
|
Allocation × (-0.25)
|
||
| 2. USDC Lending (8%) |
Allocation × 0.08
|
No IL
|
No price risk
|
||
| 3. ETH Staking (4%) |
Allocation × 0.04
|
No IL
|
Allocation × (-0.50)
|
||
| 4. Yield Farm (100%) |
Allocation × 1.00 × 0.5
|
Or -100% if rugged
|
Variable exposure
|
||
| 5. Hold USDC (0%) |
0% APR
|
No IL
|
No price risk
|
||
| TOTAL NET RETURN (Scenario C) | |||||
Percentage Return:
(Total Net Return / $10,000) × 100
Portfolio Performance Summary
| Scenario | Total Return ($) | Percentage Return (%) | Final Portfolio Value |
|---|---|---|---|
| Scenario A: Bull Market (ETH +50%) | |||
| Scenario B: Sideways Market (ETH 0%) | |||
| Scenario C: Bear Market (ETH -50%) |
Analysis Questions
- Which scenario produces the best return for your portfolio? Why?
- Which scenario produces the worst return? How would you adjust your allocation to improve this?
- Does your portfolio favor bull markets, bear markets, or stable markets? What does this say about your risk profile?
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