Uniswap Liquidity on Optimism

This analytics is done to discuss about Liquidity Provider of Uniswap v3 on Optimism and measure the growth of Uniswap v3 Liquidity pools based on LP initial participation

INTRODUCTION

Recently, Uniswap v3 has been launched on the Ethereum Mainnet. Optimism is the first Layer 2 that platforms Uniswap v3. Uniswap v3 offers numerous new features for Liquidity providers.

The new Liquidity mechanism offers user to CHOOSE the price range they wanted to provide liquidity. This mechanism is called Concentrated Liquidity. With this mechanism, when the asset price is in range, only then users pledged Liquidity goes into action and earns fees, when it is out of range, their Liquidity becomes dormant. This protects Liquidity providers from extreme price volatility.

Liquidity Provider Growth

This section discuss the growth of Uniswap Liquidity Provider on Optimism. July 4th, yields the highest number of new Liquidity Provider, at 1,201 unique address. As of today, 5055 new address has participated on Uniswap LP on Optimism.

Which Pools are attracting new LP?

In order to find which pool are attracting the new LP, we are going to study which pool, new Liquidity Provider chose to pledge their asset.

The bar chart visualizes the first pool users participated on Uniswap Optimism. This also can hint which pool is incentivizing Optimism Users to provide liquidity.

WETH-USDC has managed to attract 1,274 users to chip in asset for liquidity. 2nd most successful pool is WETH- OP pool, raking 1200 unique liquidity provider, followed by USDC - USDT, at 608 liquidity provider. Based on the asset pairs , the most popular asset to stake in liquidity pools are ;

WETH
OP
stablecoins ( USDC, USDT, sUSD)

In general, stablecoin-non-stablecoin type pools attracted the most number of new LP to Uniswap on Optimism. Stablecoin-stablecoin pair are not popular among new Liquidity provider.

Once user has pledged their liquidity, they will receive an NFT, instead of LP tokens. The NFT is the proof of ownership of their pledged asset. So user, can transfer their liquidity to other wallets or even list it on the NFT marketplace.

Uniswap provides a dashboard to access your Liquidity , and collect fees. Read more about Uniswap v3 here.

Conclusion

There is a constant supply of new Liquidity Provider on Optimism, as of today more than 5,000 Unique address has participated in Uniswap v3 Liquidity Pools.