Performance Of The LUNA and UST Pools on Thorswap

Our goal in this article is to evaluate how the RUNE-UST and RUNE-LUNA pools have performed on Thorswap. Furthermore, the fees generated by these pools compare favorably with other Thorswap pools. If swaps are coming from or going to these pools, are they balanced or tend to go in one direction (e.g. are more swaps coming from or going to $LUNA)?

Let me give a few words introduction about the Thorswap. 

What is THORSwap and How it Works?

DEX built by THORchain, THORswap is a cross-chain exchange that leverages THORchain’s features to provide instant liquidity and trade cryptocurrency within the network. By removing the barrier of token standards, THORswap allows users to direct exchange tokens on different blockchains with just one click.

RUNE functions as a liquidity connector between two types of assets. When swap transactions are performed, the token ratio changes, resulting in a difference in the exchange rate. As the price in the pool is different from the outside market, arbitrage traders will enter the trade and profit from the difference. This process is repeated at a high frequency. Eventually, THORChain settles with the external market. For LPs that stake for over 100 days, THORChain has implemented a permanent loss insurance formula similar to Bancor’s.

If we want to swap BTC for ETH, it first converts BTC into RUNE, then RUNE into ETH. In this case, RUNE acts as a liquidity connector between two types of assets.

Thorswap pools RUNE-UST, RUNE-LUNA : how are they doing?

In this article, we will mainly discuss the performance of the RUNE-UST and RUNE-LUNA pools on Thorswap over a period of time. In particular we are discussing the daily swap fees (USD) which are collected by these 2 pools, the number of swaps, unique swap users as well as the RUNE swap assets (i.e., from swap assets) and  to swap assets on RUNE-UST, RUNE-LUNA Swapping Pools.

From the below graph we can see the daily swap fees(USD) collected on RUNE-UST, RUNE-LUNA pools. The swap fees collected by UST are very high when we compare with the fees collected by LUNA.

From the below graph we can see the number of swaps on these two pools. More swaps were done on TERRA-UST pool. On both the pools we can see the number of swaps are in increasing trend.

On the graph below, we can see that the number of unique swapped users on TERRA-UST has suddenly increased. The graph below shows the trend of decreasing number of swapped users. 

From the below graphs we can see the to swap assets counts and also the to RUNU swap counts on both the pools RUNE-UST and RUNE-LUNA. On both cases we can see the majority of the swap counts are on TERRA-UST pool.

Here we can see the to swap asset counts are in decreasing trend . But the to RUNE swap counts are on increasing trend.

Comparison of other Thorswap pools with RUNE-UST and RUNE-LUNA pools

From the following graphs we can see the number of swaps and swap fees (USD) collected on each pool, the number of swapped users on each pool, and the number of swap assets counts across each pool as well as between RUNE-UST and RUNE-LUNA pools.

TERRA-UST pool swaps are showing number one position out of all pools. This means they provide more swaps than other pools. The TERRA-LUNA pool is in second place. The swap count on all pools is growing.

In comparison to all pools, TERRA-UST pool collected more than 45% of swap fees. Our data indicates that TERRA-UST collected 159.80K of the maximum swap fees on April 14th 2022. After TERRA-UST pool, ETH-ETH pool is collecting more swap fees on all pools.

From this below graph, we can see that there were a maximum of 1.31K unique users that were swapped by TERRA-UST pool on April8th,2022. Among all the pools, it is clear that the number of users was highest in the TERRA-UST pool.

From the below graph we can see the to swap asset counts on all swapping pools. There were 82.9k total swap assets, and TERRA.UST Pool contributed more than 28% of all swap assets. TERRA-LUNA is the next highest pool in the swap asset counts.

From the below graph we can see the to RUNE swap counts on all swapping pools. There were 93.26k total to RUNE swaps, and TERRA.UST Pool contributed more than 32% of all RUNE swaps . TERRA-LUNA is the next highest pool in the swap asset counts.

Observations

From the above analysis,

  • Based on the Thorswap performance for TERRA-UST and TERRA-LUNA pools, TERRA-UST pools have more swaps and unique users per pool than TERRA-LUNA pools. This means that more swaps are performed on Thorswap from UST than LUNA. 
  • In comparison to all pools, TERRA-UST pool collected more than 45% of swap fees. Our data indicates that TERRA-UST collected 159.80K of the maximum swap fees on April 14th 2022. After TERRA-UST pool, ETH-ETH pool is collecting more swap fees on all pools.
  • These two pools tend to have swaps that are balanced in a certain direction. Therefore, we can observe from the analysis above that the TERRA-UST pools to swap count is 28.2%, while the RUNE swap count on TERRA-UST is 32.1%. In the same way, the TERRA-LUNA pools’ swap count is 21.3%. However, the TERRA-LUNA pools’ RUNE swap count is 19.7%. Thus, TERRA-UST continues to maintain its top position consistently in both cases.

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