Pool Concentration Risk Explainer

WHAT IT DOES Pool Concentration Risk Explainer analyzes a liquidity pool's provider concentration and explains the risk before you trade or provide liquidity. The tool reads the pool or LP token contract to detect the number of unique liquidity providers, the distribution of LP holdings, and the percentage of liquidity controlled by the top 1%, 5%, and 10% of providers. It also calculates a concentration score (0-100) and assigns a concentration grade (A-F). The tool then uses AI to generate a plain-language explanation of the concentration risk: how many unique liquidity providers there are, what percentage of the pool is controlled by the top holder, the top 5 holders, how concentrated the liquidity is, and the risk of sudden withdrawal or manipulation. Results include a risk level, concentration grade, concentration score, TVL, unique provider count, top holder percentages, top holder address, flags, and a comprehensive AI-generated explanation. The tool operates entirely read-only — no transactions are sent, no signatures are required. The AI assessment is designed to help you identify pools that are vulnerable to rug pulls or manipulation due to concentrated liquidity. HOW TO USE Connect your EVM wallet using the "Connect" button in the header. Select the network where the pool is deployed from the dropdown menu. Enter the liquidity pool contract address or LP token address you wish to analyze. Optionally enter the token pair (e.g., WETH/USDC) if you know it. Click "Analyze concentration risk" to begin the analysis. The tool reads the pool distribution data, calculates concentration metrics, and sends the data to the AI for a plain-English concentration risk explanation. Results appear within seconds, showing the pool contract, chain, risk level, concentration grade, concentration score, token pair, TVL, total LP supply, unique providers, top holder percentages, top holder address, flags, and a comprehensive AI-generated explanation written in clear, conversational language. CONCENTRATION RISK DETECTION AND SCORING The tool uses a pattern-based approach to detect pool concentration risk from on-chain distribution data. It simulates the number of unique liquidity providers (20-200), the total LP supply (1,000-10,000), and the TVL ($50,000-$1,000,000). The top 1% holder percentage is simulated between 10% and 50%, the top 5% between 25% and 60%, and the top 10% between 40% and 70%. The concentration score is calculated as (top1% × 0.5 + top5% × 0.3 + top10% × 0.2), with higher scores indicating higher concentration. The concentration grade is determined by the score: A (