Try Quests to earn cryptoWeighted-Average LP Duration
In this analysis, You will read Weighted-Average Liquidity provider duration. Do you think What is the average duration of liquidity held in each pool, weighted by the size of the LP?
One who deposits their assets into liquidity pools is called a liquidity provider (LP). Liquidity providers allow traders to swap assets within the pool. Through trading fees, incentives, and block rewards, you can earn yield on your assets by providing liquidity for traders.
To approach the final result, I divided my Finding into two categories.
- Add Liquidity with min date
- Remove Liquidity with max date
Then join two categories together to calculate Duration time, LP-size, and Weighted Lp based on pools and pool address.
- Duration time: add liquidity min time - remove liquidity max date
- Weighted LP: Number of days * LP size
Written by Hess
where
discord_id: hess#0890
and
twitter_id: @hessaminanloo
The below graph shows the share of the top 10 Pool addresses from Weighted LP. with about 30% of the total share, BTC.BTC is the most popular liquidity pool. Famous pairs like ETH.ETH and BNB.BNB with 7-8% is not in the top 3 based on weighted LP.
The below bar chart shows the top 5 pools based on total days of liquidity held. BNB.BNB and BTC.BTC with 383 days and ETH.ETH is in the top 3 pools. In this graph popular pairs are in the top 3.
So far, We chacked top pools based on weighted Lp and the total number of days liquidity held. In the below chart we can see the top pools based on LP size. Doge.Doge is in the first place. The second one is BCH.BCH and the third one is ETH.ETH.
Back to the main question of this analysis. The question was about the average duration of liquidity held in each pool. The Below chart shows the average duration and avg weighted lp. For example, The average duration of liquidity held in BTC.BTC pool is about 59 days.
In the below colorful chart, You can see the average day of liquidity held in the top 15 selected pools.
-
ETH.KYL: 129 Days
-
ETH.SUSHI: 94 Days
-
ETH.ALPHA: 95.5 Days
-
ETH.DNA: 92 Days
-
ETH.ETH: 78 Days
-
- Remember that this chart only shows the average day of the top 15 selected pools ( based on average weighted LP). But we in this analysis, I didn't examine users and the total number of users affects the average duration time.