Try Quests to earn cryptoSushi and the Merge
Market Maker (MM)
In Cefi MM mean : The term market maker refers to a firm or individual who actively quotes two-sided markets in a particular security, providing bids and offers (known as asks) along with the market size of each. Market makers provide liquidity and depth to markets and profit from the difference in the bid-ask spread. They may also make trades for their own accounts, which are known as principal trades.
But in Defi everything are automated and market maker role played by any users or groups with much capital that provide liquidity in any pools in any platform
Brief
The Ethereum merge brought some uncertainty to DEFI markets. It got many market makers (MM) to remove liquidity from defi to lower their risk. After the merge, some have redeployed the liquidity, and some haven't
Methodology
In this dashboard i trying to analyze behavior of Market Makers two weeks before and after Merge in Sushi swap through Ethereum chain
Merge event done at September 15 so i consider whole of September as time frame of this case and also focus on Ethereum chain because most of TVL belongs to that
Coding :
First i used fact_event_logs and filter event_name column (mint = add liquidity and burn = remove liquidity) and joined dim_dex_liquidity_pools to identify all inter actions with LP pools then again joined ez_token_transfers tables to show USD volume of each transactions then sort all data to show charts
==Analyze :==
First i chart daily add and remove liquidity in Sushi at September to show daily capital flow before and after merge to show their difference and find out if volume that withdrawn again deployed in platform or not? then showed capital flow for each pool to find out which pools most affected then check top 10 wallets with most USD volume withdrawn before merge and top 10 wallets with most USD volume deployed after merge and last part check how much percent of users that withdrawn their capital again deployed their capital after Merge done
What question answered in this analyze ?
- How much capital MM withdraw before Merge?
- which pools/chains got affected the most?
- Have they redeployed back their capital?
- Can we say anything about their identity (Tokemak, etc)?
==What charts you can see in this analyze?==
- Daily and total capital deployed and withdrawn in September
- Top 10 affected pools
- Top 10 MM withdrawn capital before Merge and deployed capital after merge
- Percentage of users that redeployed their capital after Merge
Daily and total capital flow
As you can see in below there are huge withdrawn of capital by MM , in two weeks before Merge around 75M $ had withdrawn and just 20M $ deployed in two weeks after Merge
As you see just 45M $ withdrawn 1 day before Merge happened
Its obvious most of volume that withdrawn in two weeks before Merge not deployed after Merge in two weeks
Top 10 pools most affected before and after Merge
In below you can see top 10 pools affected by most volume withdraw before merge and most volume deployed after merge
USDC-WETH is most affected pool , as you can see in two weeks before merge most volume of Sushi platform withdrawn from this pool and also in two weeks after merge most of deployed volume belongs to this pool too
Top 10 MM
In below you can see top 10 MM with most volume withdrawn before merge and top 10 MM with most volume deployed after merge
Its not possible to identify their name or tags because except Tokemak deployer wallet ( 0x9e0bce7ec474b481492610eb9dd5d69eb03718d5 ) other wallets seem personal wallets that doesn’t even ENS name to escape from tracking but in these two charts there is a interesting point that some of these big players withdrawn their capital and after merge again deployed more capital for example this wallet : 0x60ca1f1f3abc9146cc7561d39c9ab1a7a279f83f before merge withdrawn around 12M $ but after merge redeployed around 30M $ or this wallet : 0x49a2dcc237a65cc1f412ed47e0594602f6141936 before merge withdrawn around 3M $ but after merge redeployed around 6M $ or
this wallet : 0x42a0a7aa839962dfafd61bf73ddf404fd46642f1 redeployed all 4M $ that withdrawn before merge
Are MM redeployed after merge ?
In this pie chart you can see percentage of all wallets that withdrawn their capital in two weeks before merge and its obvious most of them around 87% not redeployed their capital again and just 13% of redeployed again
Conclusion
As you saw in charts and data its very obvious and clear that many of wallets and most of volume that withdrawn their capital from Sushiswap in two weeks before Merge prefer to not redeployed again after merge but still its noticeable that some of top big MM that withdrawn their capital two weeks before Merge , again redeployed even much more capital in Sushiswap at two weeks after Merge