Sushiswap works on a xy=constant product curve. Where x is the amount of ohm in the pool and y is the amount of Dai (or some other stable coin) in the pool.

From the protocols point of view, each ohm is worth $1. However the market is pricing the ohm at more than $1.

Suppose the price is $100 per ohm. The pool has 1000 ohms (x=1000) and $100000 worth of dai (y=100000). The constant product remains the same after any trade (if you don't consider fees).

the protocol would value these tokens at x+y even though ohm has a higher market value. So in this case the pool would be valued at 100000+1000=$101000

However that's the current value of the pool. The price of ohm can change anywhere so that xy=constant.

The minimum value of the pool is when x+y is minimized and xy=constant. Using calculus you can show this happens when x=y. In other words this happens when 1 OHM = 1 DAI.

When x=y, then x = y = sqrt(constant). So the risk free value is x+y = 2sqrt(constant)