Liquidity Pools - Wallet Composition
As shown on single number at the left side total number of wallets which are providing any liquidity on Osmosis pools is 198.5K wallets.
As shown on donut chart at the left side total number of wallets which are providing any liquidity on Osmosis pools in 2021 was 48,617 wallets and in 2022 so far is 184,081 wallets which has been increased 3.8 times so far since 2021.
79.1% of users added liquidity into Osmosis pools in 2022 and only 20.9% users added liquidity into Osmosis pools in 2021.
As shown on bar chart at the left side total number of wallets which are providing any liquidity on Osmosis pools has been growing monthly towards March of 2022 which maxed on March 2022 with 89K wallets then decreased each month almost for all of the months afterwards.
Though we can say that over all trend of monthly wallets that has provided liquidity has been bullish.
As shown on area chart at the left side total number of wallets which are providing any liquidity on Osmosis pools has been growing daily towards March first of 2022 which maxed on that day with 14K wallets, then although we see a spike occurred on May 17th with 11K wallets it decreased each day almost for all of the days afterwards.
Though we can say that over all trend of daily wallets that has provided liquidity has been bullish.
As shown on bar chart on the left side we see top 50 wallets with most provided volume which had ==pool_joined== activity and as we see most number of these wallets had provided volume lower than 5*10^22 and only few wallets like osmo19usfw5xtrupjw3mffe7tt399k8nxz8pr8q3tg8 or osmo1j98uj6d9pxlzhk8kk3fpfejxdmlekdvudq69dl
had provided liquidity around 2*10^23 volumes.
Other potential whales:
- osmo1sw928958zhxu8wfm985r5893vzzwa6laxd3zzz
- osmo138897rghcgukk8vumm9u2z7q950mwksadl244a
- osmo1wd4n3s0ahehmlp37axcyfglp9vtejk3aq9zqwm
- osmo1ywxm90ay7qlekyhuueakwd2jp2vuk9s2dkreaa
- osmo1kxqtfk5gnuxcj0ur8c5aeprl3fywjzgs025576
- osmo1ys7s8x49xev0t62mu5hw5khyv07l7p4fxlyrhd
- osmo1wjjg0mvsfgnskjj7qq28uaxqwq5h38q68enshj
- osmo1hvccsw6jq4m9lhxw4fq426uwcyfxts7nxa8fx9
As shown on bar chart on the left side we see top 50 wallets with most provided volume which had
==lp_tokens_minted== activity and as we see most number of these wallets had provided volume lower than 1*10^30 and only few wallets like osmo15nwzl29unvkjg6r0f3wlaf2uft4wayttppdvjs or osmo1e6n9am23ue0hhqa88a8m5gxk3f75np6a7r2l8r
had provided liquidity around 1.2*10^32 volumes.
Conclusion
- Most of 198.5K wallets that has provided liquidity into Osmosis pools are wallets that created and used in ordinary way on Osmosis.
- Most of these wallets provided liquidity in 2022 and as we saw number of these wallets has increased significantly in 2022 compared to 2021.
- We see 10 potential whale wallets that had
pool_joind
activity and only 2 potential whale wallets that hadlp_tokens_minted
activity - Probably LP composition change based on TVL of the pools themselves and these changes can be measured.
What type of wallets provide liquidity on Osmosis?
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Is liquidity concentrated and owned by a small number of whales? Or, are there a diverse range of participants in the LP ecosystem?
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Do LP composition change based on TVL of the pools themselves?
Introduction
Liquidity Bootstrapping Pools
Osmosis offers a convenient design for Liquidity Bootstrapping Pools (LBPs), a special type of AMM designed for token sales. New protocols can use Osmosis’ LBP feature to distribute tokens and achieve initial price discovery.
LBPs differ from other liquidity pools in terms of the ratio of assets within the pool. In LBPs, the ratio adjusts over time. LBPs involve an initial ratio, a target ratio, and an interval of time over which the ratio adjusts. These weights are customizable before launch. One can create an LBP with an initial ratio of 90-10, with the goal of reaching 50-50 over a month. The ratio continues to gradually adjust until the weights are equal within the pool. Like traditional LPs, the prices of assets within the pool is based on the ratio at the time of trade.
After the LBP period ends or the final ratio is reached, the pool converts into a traditional LP pool.
LBPs facilitate price discovery by demonstrating the acceptable market price of an asset. Ideally, LBPs will have very few buyers at the time of launch. The price slowly declines until traders are willing to step in and buy the asset. Arbitrage maintains this price for the remainder of the LBP. The process is shown by the blue line below. The price declines as the ratios adjust. Buyers step in until the acceptable price is again reached.
Methodology
Using osmosis.core.fact_liquidity_provider_actions
I was successful in calculating which wallets provided any liquidity on Osmosis and by observing various aspects of these wallets such as their yearly, monthly, daily number of wallets providing liquidity or top 50 wallets that provided most liquidity using two conditions of where action in ('pool_joined') and AMOUNT>0
and where action in ('lp_tokens_minted') and AMOUNT>0
, I could answer the asked questions in the bounty.