Terra LP-ers: Aftermath

    Q102. What did people that were LP-ing in the Terra pools do? Are they just holding onto their $RUNE now or are they back in the arena LP-ing somewhere? Or did they sell their $RUNE and leave the ecosystem completely.

    Introduction

    The crash of my (ex-beloved) Terra has left us with many questions, which are hopefully going to be answered one day. This Bounty asks to analyse what users who were in the Terra-related liquidy pools on ThorChain have done after the crash - whether they have exited the LPs and kept hodling their RUNE, whether they moved to a different LP or whether they have completely exited the ecosystem. I will try to look into all of those possibilities and investigate which of those options has been the most popular amongst ex-Terra users...

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    Overall Picture

    Firstly, let's have a general look at the liquidity pools in order to see how much money was being added and how much was being removed from Thorchain's LPs after the Terra crash.

    The Terra crash started on May 9th and it took the attackers a few days to touch the floor. Here we can see that users were quick to remove their liquidity on May 9th, with the total amount removed on that day being over $600k! The same applies to the following days after the crash, $1.6M was removed on May 10th, $713k was removed on May 11th and $601k was removed on May 12th. After that, we can see a few more quiet days - I suspect that this is because ThorChain disabled any Terra-related transactions for some time... We can also see that the biggest amount of money, $5.27M was removed on May 20th. I don't have a historical record of when ThorChain enabled Terra transactions again, but I suspect that this could have been the day, which means that the majority of the money has been withdrawn from the Terra LPs on Thorchain whenever users were able to do so.

    The next step is to analyse this even further and look at what pools users were adding to and removing from their money.

    To which LPs did users add liquidity?

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    We can see here that on the day of the crash, users added a lot of liquidity to the ETH LP, as well as the BTC LP - this agrees with my logic, users moved to what they considered 'secure' assets as the crash was taking place and not many people really understood what was going to happen in the next few days.

    On May 10th, we can see over 300k dollars added to the TERRA-LUNA liquidity pool and now, knowing what happened, I am really sad to see this. This amount is what people provided as the 'buy the dip' scenario was supposedly taking place, LUNA was going down and no one really thought that this is an attack or a crash. On May 11th we can see a lot more inflow to the BNB LP, which again agrees with the idea that users moved to safer assets.

    We can see that now, that everything with Terra is over, and users are back in different LPs. We can see a lot of liquidity added on a daily basis, with the biggest spike after the crash being May 27th, with a lot of money being deposited to the ETH-USDC LP, as well as the BNB-BUSD pool. I am glad to see that many users decided to stay in the ecosystem and moved their assets during the crash to different LPs, or if they did not manage to move their funds during the crash - then they came back after it and deposited their $ to different, safer, pools.

    Let's now look at the opposite - from which pools have users withdrawn the most money during the crash and after it.

    From which LPs did users remove liquidity?

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    As we can see here, not a lot of money has been removed during the crash. I suppose users preferred to move their assets somewhere rather than completely leave the ThorChain ecosystem. This changed after ThorChain re-enabled Terra transactions, and again, we can see a massive amount of USD being removed on the 20th of May. Other than this, there have been a few spikes in the amount of money removed recently, but this is now caused by the fear of a bear market rather than anything Terra-related.

    How many users didn't do anything after the crash?

    As the final part of this analysis, let's look at the count of unique addresses before the crash and after the crash.

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    We can see that 4719 unique addresses have made some sort of transaction after the crash, whether it was to move their money to a different LP or to remove their liquidity completely from ThorChain. What is very interesting to me is that if we subtract the two values, we are left with 664 users who have not done anything! This means that these users are still in the Terra-related LPs, they didn't move their assets, didn't remove any liquidity... just stayed as if nothing ever happened!

    Conclusion

    This dashboard has looked into what users were doing on ThorChain after the sad crash of Terra. As we have seen, many people move their money to different pools, or have waited a few weeks and gone back to other, safer assets, such as ETH or BNB. We have also seen how much liquidity was removed from the Terra LPs after the crash, once Terra transitions were re-enabled again. As the final part, I have shown that over 600 users have done nothing with their LPs and have stayed in the same pools, been though that money is worth very little now...