liquidity-depth-analyzer

Liquidity Depth Analyzer

DEX liquidity analysis and slippage estimation for MEV trading.

When to Use

• Implementing swap execution
• Selecting optimal routes
• Sizing positions for trades
• Calculating price impact
• Validating arbitrage profitability

Workflow

Step 1: Check Liquidity Depth

Verify depth >= 3x trade size.

Step 2: Calculate Price Impact

Ensure impact < 0.5% (50 bps).

Step 3: Validate Profit After Slippage

Confirm profit survives slippage tolerance.

Core Rule

Never execute without knowing:

1. Available liquidity at current price
2. Price impact for your size
3. Whether profit survives slippage

Key Formulas

price_impact_bps = |1 - (in/out) / spot| × 10000 minAmountOut = expected × (1 - slippage_bps / 10000)

Config

const config = {
  max_price_impact_bps: 50,   // 0.5%
  max_slippage_bps: 100,      // 1%
  min_depth_multiplier: 3,    // depth >= 3x trade
};

Abort Reasons

| Code | Action | |------|--------| | NO_POOL | Find alternative route | | LOW_DEPTH | Reduce size or split | | HIGH_PRICE_IMPACT | Reduce size | | LOW_PROFIT | Skip opportunity |