Definitions

• Swap Volume: The total volume in USD trade using a liquidity pool in a given time period.

• LP rewards: The rewards distributed to liquidity providers of a pool from the fees paid by people swapping in the pool.

Methodology

• We will look at the daily swap volume and lp rewards on Thorchain.

• we will break these metrics up by pool.

• We will look to see the correlation between these two metrics.

Swap Volume vs. LP Rewards Metrics

Conclusion

• For two months Thorchain has had over 1 Billion in Dex volume.

• The swap volume on Thorchan at the total rewards received by Thorchain liquidity providers track each other very wee with a correlation of Nearly 0.8.

• The time periods where the two values seem to not correlate are during network shutdoons which seem to be an outlier.