(If Liquidity Drops → How Fast System Self-Heals)

🚨 Shock Scenarios

Scenario TVL Drop Cause
Mild -15% Normal market rotation
Medium -30% Risk-off macro
Severe -50% Black swan / systemic event

Yield Auto-Recovery Effect

Because fees are volume-driven:

TVL ↓ → APR ↑ → LP Inflow → TVL Recovery

Recovery Speed Model

Shock Immediate APR Spike Expected Recovery Window
**-**15% +18% APR boost 2–6 weeks
**-**30% +42% APR boost 1–3 months
**-**50% +95% APR boost 3–6 months

Shock → Recovery Curve

TVL

100% | ██████████
 80% | ████████
 70% | ███████      ← shock
 85% | █████████    ← recovery inflow
100% | ██████████

🧠

Healthy real-yield exchanges self-correct via APR elasticity, not emissions.

That is critical for long-term treasury preservation. That mechanics we would implement into the core system of our protocol!