"Small" LP Actions

    This dashboard investigates whether chains with low gas fees (like Terra) have a larger proportion of small liquidity providers than chains with high gas fees (like Ethereum).

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    Introduction

    Gas fee is a determinant factor in decision of users to do actions on blockchain.

    This dashboard aims at testing the following hypotheses:

    Chains with low gas fees (like Terra) have a larger proportion of small liquidity providers than chains with high gas fees (like Ethereum).

    Analysis

    'Small' liquidity is defined as liquidity with the value of less than $1000.

    The graph below shows the number of liquidities have been provided into the THORChain liquidity pools categorized by 'small' and 'large' per chains.

    As can be seen Terra is the most popular source of liquidities.

    The graph below demonstrates the proportion of small to large amounts per chains.

    This graph does not support our hypothesis, as the proportion of small to large in both chains Terra and Ethereum are almost the same.

    In bnb we can see the relative number of small amounts are significantly less than the other chains.

    'Small' liquidity is defined as liquidity with the value of less than $100.

    Now we change the definition of 'small' into less than $100.

    The graph below shows again the number of liquidities have been provided into the THORChain liquidity pools categorized by 'small' and 'large' per chains.

    We can see a significant change in the proportion of small and large.

    The proportion of small to large liquidities is not the same between Terra and Ethereum anymore.

    Also we can see a shift in the proportion in bnb chain. By this definition the dominant category is large liquidities in this chain.

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    Now, we will zoom in on the distribution of liquidity amounts in three main chains.

    Conclusion

    The data shows that the highest number of liquidity amount range falls in less than $100 in terra chain.

    For bnb is distributed equally into the four categories of 100, 200, 300 and 400 USD.

    And for ethereum is between $500 and $1500.

    We can claim that chains with low gas fees (like Terra) have a larger proportion of small LPs than chains with high gas fees (like Ethereum). However, we should scrutinize our definition of small.