Try Quests to earn cryptoLiquidity Pools - Wallet Composition
What is Osmosis?
Osmosis is Layer-1, Proof-of-Stake (PoS) blockchain built using the Cosmos SDK that has optimized its design to be a sandbox for automated market makers (AMMs). The chain enables developers to design and deploy customized AMMs by using its various modules and leveraging Osmosis' on-chain governance system. Osmosis' native token, OSMO, grants holders the right to vote on proposed network changes and earn rewards for helping secure the network. Its first application, also called Osmosis, is an AMM that features ATOM and OSMO as its initial base trading pairs.
What is a DEX?
A decentralized exchange (DEX) is a peer-to-peer (P2P) marketplace that connects cryptocurrency buyers and sellers. In contrast to centralized exchanges (CEXs), decentralized platforms are non-custodial, meaning a user remains in control of their private keys when transacting on a DEX platform.
How does liquidity Providing works?
Liquidity providers are investors who stake their cryptocurrency tokens on DEXs to earn transaction fees, often referred to as liquidity mining or market making.
Data
The data for this dashboard will come from the osmosis.core tables of Flipside’s database. The data in the tables show the activity of to pool entered in the pool_id box. Currently, the data for pool_id 1 is incorrect.
Objective
In this dashboard we are looking to see what type of wallets provide liquidity on Osmosis and answer the following questions:
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Is liquidity concentrated and owned by a small number of whales?
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Is there a diverse range of participants in the LP ecosystem?
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Do LP composition change based on TVL of the pools themselves?
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Pool liquidity
Description
- The graphs above show the TVL, Token Price, and Liquidity flows of the selected pool
Observations
- Most of the older Osmosis pools have lost the majority of their liquidity since early 2021
- The Osmosis pools that have started since the summer of 2022 have been growing fast in terms of liquidity
- Liquidity flows differ a lot by pool.
Pool liquidty providers
Top Osmosis liquidity pools by swap activity
Description
- The graphs above show The liquidity breakdown of the selected pool by wallet
Observations
- Smaller pools are more likely to have the top whales providing most of the liquidity of the pools
- For most pools, the top 20 wallets provide between 25% and 60% of the liquidity of the pool
- In most pools, the largest liquidity providers have the most liquidity by a wide margin
Conclusion
- Is liquidity concentrated and owned by a small number of whales?
- For most pools, the top 20 wallets provide between 25% and 60% of the liquidity of the pool
- Is there a diverse range of participants in the LP ecosystem?
- most pools have between 1K - 40K liquidity providers
- there are a few very large LPs in each pool and a large number of Small LPs
- Do LP composition change based on TVL of the pools themselves?
- Smaller pools are more likely to have the top whales providing most of the liquidity of the pools