Liquidity Providers Stats

    1. Evaluate the distribution of various target segments who provide liquidity (LP) 2. Evaluate the profitability of an LP Provider & Yield Farmer

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    About Sushiswap :

    SushiSwap is a software running on Ethereum that seeks to incentivize a network of users to operate a platform where users can buy and sell crypto assets. Similar to platforms like Uniswap and Balancer, SushiSwap uses a collection of liquidity pools to achieve this goal.

    About Liqudity pools :

    A liquidity pool is a digital pile of cryptocurrency locked in a smart contract. This results in creating liquidity for faster transactions.

    Liquidity pools are also essential for yield farming and blockchain-based online games.

    About Yield farming :

    Yield farming involves lending or staking cryptocurrency in exchange for interest and other rewards. Yield farmers measure their returns in terms of annual percentage yields (APY). While potentially profitable, yield farming is also incredibly risky.

    Our goal and methodology :

    We will do a wide analysis on sushiswap pools and a deep dive in liquidity pools providers and yield farmers actions.

    A precise look at liquidity in and outflow of pools and they profits and losses.

    We will check number of providers , and farmers , ratio between them , ratio of liquidity that protocol owns and retails , and up and down of providers in last years .

    We also will check the correlations between pools , time of withdrawals and profitability of them.

    To get into that point we have ethereum and polygon databases to use . transfers , dex_liquidity_pools and dim_labels tables are our main tools to get the data we need . lets get started with charts :

    First of all lets see how many unique LP providers and yield farmers we have and ratio between them

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    The next data is the number of lp positions created by each user in average . i decided to divide them by network to get a better view . of course there overall results too

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    Its to time check the liquidity (Based on TVL) owned by the Protocol vs. Retail LP in both LP Pool and yield farms and it proportion.

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    With a simple calculation we can get this proportions for LPs as 0.019 and for yields farmer its 0.0024

    Our next study will be about The percentage of LP Providers in Sushi over the last 1 year

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    Now lets check some correlations

    Below charts tell us about that . in orders :

    • correlation between profitability vs. length of time
    • correlation between profit vs. time of withdrawal
    • Correlation between profitability vs type of pool
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    Conclusion

    The charts are clear to understand but it worth to say :

    • The providers in ethereum and polygon network are proximately equal.
    • Retail providers and farmers liquidity are much more than liquidity that protocol holds.
    • farmers got much profits in all timeframes we analyzed while providers lost a lot in past three months yet before that they got profit too.
    • June 15th was the best time to withdraw for providers and this date was may 17th for farmers.
    • perp-weth slp was the best pool to get profit from in last year