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wETH Liquidity Flow on Osmosis
The chart below represents the volume of WETH flowing into and out of WETH-OSMO liquidity Pools. Throughout the year, the deposit volume is higher by magnitude compared to exit volume, indicating liquidity providers believe it is advantageous to provide liquidity and expecting return from fees. However on June 8th, There are a high volume of WETH liquidity being withdrawn. This may shows that liquidity provider finds the trade off of providing liquidity is not profitable anymore or there are risks in either asset experience significant price drop.
Osmosis.zone, Sushiswap and Thorswap
Lets compare the deposit metrics accross various DEXs: Sushiswap, Thorswap, and Osmosis.zone. In terms of Deposit rate, we can see that Osmosis is has the highest metric, espevcially May 25th,where it jumped from 76.7 wETH to 721.5 wETH in just 2 days. Sushiswap shows decreasing trend, despite it yields the highest volume per day compared to the other two DEXs.Thor hain has the least deposit per day in terms of volume.
Introduction
Osmosis.zone is a DEX on osmosis chain, that allows swapping and liquidity pooling mechanism. This is the same as Sushiswap on Ethereum. The selling point of Osmosis is that it allows interchain swapping. Thorswap offers the about the same, multichain swap. We are going to measure osmosis liquidity deposits against Sushiswap and Thorswap.