Liquidity providers stats

1. Evaluate the distribution of various target segments who provide liquidity (LP):

    - What’s the total no. of unique LP providers?
   
    - What’s the ratio between Yield farmers vs. LP Providers?
   
    - What’s the average no. of LP positions opened by each unique wallet address
   
    - What’s the ratio of liquidity (Based on TVL) owned by the Protocol vs. Retail LP in both LP Pool and yield farms
   
    - The percentage (%) increase/decrease of LP Providers in Sushi over the last 1 year
   
   
   

2. Evaluate the profitability of an LP Provider & Yield Farmer

    - Evaluate if there’s a correlation between profitability vs. length of time?
   
    - Evaluate if there is a correlation between profit vs. time of withdrawal
   
    - Correlation between profitability vs type of pool? EX: stable pool
   

Findings

• The results show that during the last year, 91.1k users have done LP, which has resulted in 366k LP transactions. As a result, the average LP positions for each user is equal to 3.69.

• The decreasing trend in both the number of users and the number of positions as well as the value of LPs has been noticeable during the last year and has continued until today.

• Over the past year, the LP trend using the wETH token has been higher than other tokens.

• during the last year, 14.85k users have done yield farming, which has resulted in 32k LP transactions. As a result, the average yield farming count for each user is equal to 2.17.

• Like LP, the declining trend in yield farming is quite impressive in all metrics.

• The ratio between yield farmers and Lp providers is 15.75 % (almost all yield farmers did a LP and 15.75% of LPers, did a yield farming)

• The ratio of tvl owned by retail LP is almost 99.9% in terms of yield farming and LPing.

• the monthly percentage chage in LProviders, is also provided in this dashboard. in FEB 2121, the number of LProviders experienced a -40% drop compared to Jan 2022, but in March and April, the situation was relatively stable .On May and July, the decreasing trend is visible, confirming by -30 and -31 % drop in two continues months. in latedt months, it seems that the situation was semi stable again.

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METHOD

Sushi Liquidity providers interact with sushi pools on Ethereum, so, the first step is to define the destination,which is all addresses in ethereum.core.dim_dex_liquidity_pools where PLATFORM ilike'sushiswap'

second step is to define some metrics in ethereum.core.ez_token_transfers table to find LPs.

origin_function_signature in ( '0xded9382a','0xe8e33700', '0xf305d719') and ORIGIN_TO_ADDRESS in ('0xd9e1ce17f2641f24ae83637ab66a2cca9c378b9f' )

In terms of yield farming, using the same table, the conditions are :

ORIGIN_TO_ADDRESS in ('0xef0881ec094552b2e128cf945ef17a6752b4ec5d') 
  and 
ORIGIN_FUNCTION_SIGNATURE in ('0x8dbdbe6d') 

in terms of withdraw, we can use the signatures ('0xbaa2abde', '0x02751cec', '0x2195995c') for LP and ('0x8dbdbe6d') for yield farming.

Findings

• According to the results, it can be seen that, with the increase of the duration (distance between investment and withdrawal), the amount of profit has also increased.(Even most of those who have harvested under two months have been at a loss) As a result, it can be said that in the discussion of LP, the duration of capital sleep has a relatively direct relationship with the amount of profit, and therefore, there is a positive correlation between them. Of course, this is confirmed relatively, because there are contradictions in the results. The same is true for yield farming.

• The charts show that the months of April 2022 and later, in LP discussion, were more suitable times for capital withdrawal. Looking at the chart, those who made withdrawals before April 2022, mostly did not profit.

• In the case of yield farming, the results are almost the opposite of LP. According to the chart, positive gains can be seen in MAY 2022 and after that month, most of the withdrawals were accompanied by losses.

• So the above materials confirm that the withdraw time has its effect on the amount of profit.

• The type of pool has also been effective in the amount of profit. Looking at the charts above, 30 pools with the highest profit/loss are presented . Among the profit makers, prep-weth, axs-weth and pnk-weth are in the first to third ranks.