> For the complete documentation index, see [llms.txt](https://docs.wombat.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wombat.exchange/concepts/global-equilibrium-coverage-ratio.md).

# Global Equilibrium Coverage Ratio

The system health of a pool could be measured by the **global equilibrium coverage ratio** $$r^\*$$, which is the coverage ratio when all tokens return to the equilibrium state.

$$
\sum{L\_x (r^\* - \frac{A}{r^\*})} = K
$$

If r\* is greater than or equal to 1, it indicates the pool has enough asset to cover its liability.

## Visualize Wombat

By plotting Wombat’s invariant when the amplification factor is 0.05, we can generate the following visualization:<br>

![Wombat Invariant (Red curve) and Constant Function Market Makers (blue curve)](https://1070885964-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FThPvPT9swMojRVetwOjW%2Fuploads%2FFlpW6FkwZB8pMPTgwoon%2Fimage.png?alt=media\&token=9b4fd955-5e53-4871-a501-a5e171f1683b)

When the pool is close to equilibrium, tokens are exchanged in a way similar to CFMM. Unlimited liquidity is provided near the tail when it deviates from equilibrium.
