wETH & wBTC On- and Off- Ramps

On the Osmosis Frontier, there are pools for wETH and wBTC. How do users respond and change their position in these pools in response to governance proposals involving extra incentives for these pools? Do their deposits and withdrawals of wBTC and wETH onto Osmosis change as well?

Introduction

What is Osmosis?

Osmosis is a decentralized peer-to-peer blockchain that people can use to create liquidity and trade IBC enabled tokens. The Osmosis blockchain is made up of free, public, and open-source software.

How were the wETH & wBTC incentives on Osmsis Changed

Recently there APY for the wETH and wBTC OSMO pairs were drasticaly increased currely there are over 100% APY of depositors.

Methodology

We are going to look at the LP deposits into beth the wBTC and the wETH pools
We are looking to see how these increased rewards change LP behavior

Osmosis wETH & wBTC Metircs

Observations

When the wETH and the wBTC pools were released on Osmosis there was a spike in liquidity providers to over 400 liquidity providers per day.
Since the initial LP spike there was a consistent decrease in the WBTC and WETH pools.

Conclusion

There has been a small number of users withdrawing LP compared to users Adding Liquidity
The number of Liquidity withdrawing from WBTC and WETH pools have been steadily increasing on Osmosis
When the wETH and the wBTC pools were released on Osmosis there was a spike in liquidity providers to over 400 liquidity providers per day.

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