Distribution Of LP Size

In this article we aim to show the current distribution of LP size for each pool. Here I used both ‘add_liquidity’ and ‘remove_liquidity’ to determine which LPs are still current.

As we already know , One who deposits their assets into liquidity pools is called a liquidity provider (LP). Liquidity providers allow traders to swap assets within the pool. Through trading fees, incentives, and block rewards, you can earn yield on your assets by providing liquidity for traders.

On this dashboard we are going to display the current distribution of LP sizes by Thorswap pool. In addition, we also consider both the ‘addition of liquidity’ and ‘removal of liquidity’ as factors to determine which LPs are still current. As you can see from the below graph, we have classified wallets by amount of liquidity in each wallet, based on the amount of liquidity which is in it. In the data we see a maximum of 3990 wallets, which contain a lesser amount of liquidity than $1000. Close to 40% of the wallets are categorized as having less than $1000. We can also see that 28.3% of users are able to manage their liquidity between $1000-$5000. There are only 46 wallets that contain liquidity between $500K-$1 Million, as shown here. Thus, more than 68% of wallets keep their liquidity under $1000 and also within $1000-$5000.

On the below graph you can see how THORchain’s LP sizes are distributed by pool. As you can see, more wallets that have LPs between $500K and $1M are from the BTC-BTC pool. Also, a lot more wallets which have LPs below $1000 are BNB.BNB, followed by BNB.BUSD and TERRA.UST pools. The majority of wallets with a $1M+ are from the ETH.ETH pool, followed by the TERRA.UST pool and BTC.BTC pool.

According to the above analysis, most wallets with a $1M+ balance are on the Ethereum.ETH pool, followed by the Terra.UST pool and BTC.BTC pool. This indicates more Whale users are on the Ethereum.ETH pool, followed by the Terra.UST pool and BTC.BTC pool. BNB.BNB provides the largest number of normal wallets, followed by BNB.BUSD and TERRA.UST.

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