Unofficial V4 scenario model
Explore three worked scenarios modelling how spot ETH, a leveraged lending position, or a perpetual long could behave if converted into a Peapods V4 position, then use the calculator to explore your own position.
The model’s assumptions and equations can be reviewed in the app and on GitHub. Results are scenario estimates, not official Peapods calculations, predictions or financial advice, and the model may be revised as fuller documentation and post-launch performance data become available. View model scope & assumptions
What the model does
This calculator models potential Peapods V4 position profiles and compares them with spot, lending and perpetual positions. The Harvester extends the model by planning scheduled withdrawals as price targets are reached.
Model scope
The displayed V4 curves are price-only base curves. They do not add Volatility Farming yield or subtract borrowing, rebalancing and execution costs. At this base-curve level, the model is also time-independent and path-independent: a given asset price move produces the same modelled result regardless of how long it takes to occur or the price path taken to reach it.
In practice, the path matters. Peapods’ design uses volatility-generated yield alongside automatic rebalancing, so a more volatile route to the same final price may generate additional yield that the base curve does not capture. That yield is intended to offset or exceed the costs of maintaining the leveraged position, while potentially adding further return.
The displayed curves should therefore be read as a structural baseline for price response, not an estimate of total realised return. The model is built from the V4 mechanics and examples made public so far, and its assumptions may need refinement as fuller specifications and live performance data become available.
Scenario analysis
Each example converts the user’s current net equity into V4 and follows both positions across the same range of ETH price moves.
Scenario A · Spot asset holder
Current position & standpoint
10 ETH$15,000 at a $1,500 ETH price
The user believes ETH can reach $10,000 within their time horizon, while accepting that it may first trade back toward the $1,000 level. They want to remain positioned for that full upside range rather than reduce their exposure early.
Goals
Modelled V4 position
50% allocated to a 2.5× Long + 50% allocated to a 2× Short.
The structure is designed to combine defensive downside behaviour with increasingly convex upside exposure.Shape the range
This is more than downside protection. The 2× Short can become profitable enough on a severe ETH decline to push the combined position above its starting value, while the 2.5× Long increasingly dominates on the way up. The result is a position designed to extract value from both directions while retaining strongly convex upside.
Inspect the construction
The detailed view shows the position’s exact value, return from entry and V4 edge over spot across the planned price range. At −40%, V4 retains $11,200 versus $9,000 in spot; at the $10,000 target, it reaches $362,360 versus $100,500, a V4 edge of $261,860.
Harvest the route
Four checkpoints match the planned profit targets. By the $10,000 ETH target, the plan has harvested $81,325 while leaving $140,585 still active in V4, for $221,910 total wealth. The remaining V4 position alone is still $40,085 ahead of holding spot at the target.
Scenario B · Lending position
Current position & standpoint
20 ETH$30,000 collateral · $15,000 debt · $15,000 net equity
The position reaches its 85% LTV liquidation threshold at approximately $882 per ETH. The user is prepared to hold for the long term and expects ETH may eventually reach $7,500, but considers a move below $1,000 possible first and has no immediate plan to sell.
Goals
Modelled V4 position
60% allocated to a 2.5× Long + 40% allocated to a 2× Cashback Short, releasing $3,000 in cash.
The short-side component is used to defend the lower range while the larger long allocation protects the bullish objective.Caution: the short Cashback side of the calculation may be incorrect. Treat results with caution — under review.
Replace the cliff
The lending position reaches liquidation after a 41.18% decline in ETH, fixing a hard endpoint for the trade. The modelled V4 position remains active through the lower range, reaching $23,190 at −60% and rising sharply to $78,360 at −80% as the Short Cashback component increasingly benefits from the deeper decline.
Accept a narrow trade-off
The defensive structure creates a modest cost on the earlier upside: at +100%, V4 is $39,750 versus $45,000 in the lending position. By +200%, V4 has moved ahead at $84,333 versus $75,000. At +400%, V4 reaches $228,120 versus $135,000, a $93,120 V4 edge.
Scenario C · Perpetual long
Current position & standpoint
20 ETH long$1,800 entry · $1,500 current price · $13,200 margin
The position carries a $6,000 unrealised loss, leaving $7,200 of current net equity and approximately 4.17× effective exposure. Liquidation sits at $1,200. They remain long-term bullish but no longer want to keep defending the margin position.
Goals
Modelled V4 position
100% allocated to a 2.5× Long using the position’s current $7,200 net equity.
The comparison deliberately rebases onto the equity that remains today, rather than the original margin.Trade the liquidation line
The perp offers the strongest near-term upside, but another 20% ETH decline wipes out the remaining equity. Spot removes that risk but gives up leveraged upside. V4 achieves the middle ground: at the same −20% move it retains $4,608 while preserving substantially more upside potential than spot.
Rebase onto current equity
The original perp leads through the early upside range, but V4 keeps building without its liquidation boundary or ongoing funding drag. That makes a longer horizon viable and shifts the focus toward recovering capital along the way.
Recover the margin
With the longer horizon established, six 20% harvest checkpoints recover the full original $13,200 margin by +180%, progressively taking capital back off the table without closing the position. At +500%, the remaining V4 position has almost caught the original perp on its own, while total wealth has already moved ahead, without the liquidation cliff or ongoing funding drag.
Explore your own range
Change the position, constraints and price targets in the live calculator, then inspect every curve and equation.