Introduction

In this analytics i went through Sushi Liquidity pools and analyze diffrent parts of Liquidity Pools or Liquidity Providers and Yield Farms or Yield Farmers. I analyze them in 2 diffrent section:

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

What is 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.

How does SUSHI Farm work?

SushiSwap's “2x Rewards Farm” is a bonus scheme that allows users to earn rewards in SUSHI and YGG tokens for every second that they deposit and keep the required cryptocurrencies on the SushiSwap platform.

What is a Yield Farmer?

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.

What is a LP Provider?

Liquidity providers (LPs) are those people who add funds to a crypto liquidity pool. A liquidity pool is a large amount of money that traders can trade against. In exchange for providing liquidity to the protocol, LPs receive fees from trades that occur within their pool.

Methodology

In this dashboard i used flipside data and some ethereum tables like : flipside_prod_db.ethereum.udm_events , ethereum.core.fact_event_logs,ethereum.sushi.ez_lending,ethereum.core.dim_dex_liquidity_pools

,ethereum.core.ez_token_transfers to gather the data that i needed.

For the first section i analyze lp providers and yield farmers and compare them to each other in diffrent ways, then for the second section i went through pools profitability and analyze some correlation between diffrent things like correlation between profitability and length of time, or profitability and time of withdrawal and also profitability with type of pools.

What’s the total no. of unique LP providers?

• For this part i counted and distincted origin_from_address from ethereum.core.fact_event_logs
• I analyzed Daily LP Providers Since 2021-08-01( Last Year )

I analyzed daily unique lp providers since last year and Total Unique lp providers all time

• The number of providers almost doubled since Aug 1st until Oct 13th 2021 and then it slowly decreased and pumped again on Dec 26th 2021 and smoothly decresed after that until now and it dropped like 85% since Aug 1st 2021 until now
• The highest number of lp providers in last year was October 13th 2021
• In my thoughts it is now supporting with a horizontal line (Trader vibes xD )

What’s the ratio between Yield farmers vs. LP Providers?

What’s the average no. of LP positions opened by each unique wallet address

• The Bar chart above shows the top 10 wallet addresses with the most number of LP Positions
• the highest number of lp positions is for 0x1f14be60172b40dac0ad9cd72f6f0f2c245992e8

What’s the ratio of liquidity (Based on TVL) owned by the Protocol vs. Retail LP in both LP Pool and yield farms

• For this part i gathered sushi pool addresses with ethereum.core.dim_labels table then joined it into ethereum.core.fact_event_logs and analyzed the ratio of liquidity both for LP Pool and Yield Farms

The Left chart is for LP Pool that shows Protocol LP and Retail LP, the left one is for Yield Farms that shows Protocol Yield Farm and Retail Yield Farm

• As we see in both charts Retail LP and Retail Yield Farm is much more than Protocol LP and Yield Farm
• Protocol LP and Yield Farms is like 0.02% and Retail LP and Yield Farms is 99.8% and Protocol is barely visible when i compare it to Retail

The percentage (%) increase/decrease of LP Providers in Sushi over the last 1 year

• I analyzed the percentage since 2021-08-01 until now
• The first day of my analyze Aug 1st 2021, it was near 400 lp providers and it decreased now to 60 lp providers per day
• The number of lp providers dropped like 84% percent since lst year and it is not a good sign for sushi

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

• In this section i went through sushi Pools Profitability and analyze it for both LP Providers and Yield Farmers

Evaluate if there’s a correlation between profitability vs. length of time?

• Highest Profitability of LP Provider is Over 3 month and the lowest is Under 1 week
• Highest Profitability of Yield farmer is between 1 to 3 month and its so close to Over 3 month and the lowest is under 1 week

if the length of time reaches higher then the profitabilty will be more in most of times

Evaluate if there is a correlation between profit vs. time of withdrawal

Correlation between profitability vs type of pool?

• The highest loss is for WBTC-WETH SLP pool with 126M
• The highest profit is for MULTI-USDC LP pool with almost 10M
• SUSHI-WETH slp is the most popular liquidity pool in Sushi
• Highest Daily rewards for Sushi pools was June 14th 2022 with 144K

I analyzed daily sushi pools rewards for past 3 months

Conclusion

• Sushi LP Providers decreased badly from last year

• LP Providers are more than Yield Farmers with a ratio of 16.3%

• Liquidity of Retail LP in both LP Pool and Yield farms is much more than Liquidity that owned by Protocol

• LP Providers decreased 84% from last year and its not a good news for Sushi organization

• The duration of time is directly related to the profitability

• SUSHI-WETH is the most popular liquidity pool in sushi

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• This Dashboard written by Sbhn_NP#8717 with flipside data on Aug 24th 2022
• credit to m.zamani