"Small" LP Actions

    What percent of LP adds to each pool are small (<$1k USD)? Is there a relationship between the chain and the proportion of “small” LPs?

    Introduction

    This analysis will explore the actions that add liquidity to a pool in terms of large and small amount (<1k USD).

    THORChain allows liquidity providers to add liquidity symmetrically (both asset in LP)or asymetrically (only one fo the assets). Users tend to provide LP to gain rewards.

    Methodology

    Four different CTEs are created for each of the combination between LARGE and SMALL liquidity adds and RUNE and ASSET as the transferred coin. Each of these will have:

    • pool_name
    • count(rune_amount_usd/asset_amount_usd)
    • where rune_amount_usd &lt; 1000

    These CTEs are then joined using full join to gather the intermedeiate points

    Conclusions

    There seems to be no relationship between low-fees chains and LP proportion of small liquidity adds.

    Results

    Figure 1. shows the percentage of small transaction (<1k USD) for each LP. A trend is seen where the add liquidity transaction to the LP as RUNE have usually less SMALL txs and LARGE.

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    Figure 2. shows a scatter plot with percentage of small txs in RUNE vs in ASSET colored by chain.

    We see a general trend where ETH chain has more variance of the metric compared to BNB but I cannot infer from the data that chains with low fees don`t have a significantly bigger proportion of small than chains with higher fees.