Q109. Liquidity providers stats

1. Evaluate the distribution of various target segments who provide liquidity (LP):

    - What’s the total no. of unique LP providers?
   
    - What’s the ratio between Yield farmers vs. LP Providers?
   
    - What’s the average no. of LP positions opened by each unique wallet address
   
    - What’s the ratio of liquidity (Based on TVL) owned by the Protocol vs. Retail LP in both LP Pool and yield farms
   
    - The percentage (%) increase/decrease of LP Providers in Sushi over the last 1 year
   

2. Evaluate the profitability of an LP Provider & Yield Farmer

    - Evaluate if there’s a correlation between profitability vs. length of time?
   
    - Evaluate if there is a correlation between profit vs. time of withdrawal
   
    - Correlation between profitability vs type of pool? EX: stable pool
   

Liquidity Pools and Providers:

Liquidity Pools (LPs) are pools which users (Liquidity Providers | LPers) can deposit their assets into them in order to provide liquidity for that pool. This provided liquidity is essential to keep the DEX (i.e Sushiswap) afloat and in a usable state. Without enough liquidity, the slippage incurred to traders will be high which in turn lose traders' interest due to increased loss. To incentivize users to provide liquidity, a swap fee is incurred to the traders and awarded to the liquidity providers. liquidity position means an exchange (i.e Sushiswap) foreseen need for liquid assets expressed as the ratio between the actual and potential sources of liquidity and the actual and potential use of liquid assets in the same period.

Yield Farming and Farmers:

Yield farming involves lending or staking cryptocurrency in exchange for interest and other rewards such as transaction fees. Yield farmers measure their returns in terms of annual percentage yields (APY). While potentially profitable, yield farming is also incredibly risky. Yield farming is one such investment strategy in DeFi. This is somewhat similar to earning interest from a bank account; you are technically lending money to the bank

According to Gemini, a liquidity pool is a crowdsourced pool of cryptocurrencies or tokens locked in a smart contract that is used to facilitate trades between the assets on a decentralized exchange (DEX). Instead of traditional markets of buyers and sellers, many decentralized finance (DeFi) platforms use automated market makers (AMMs), which allow digital assets to be traded in an automatic and permissionless manner through the use of liquidity pools.

'0xe8e33700' -- add Liquidity

'0xf305d719' -- add Liquidity ETH